|[August 06, 2014]
Alvogen Acquires Korean Dream Pharma for US$ 187 Million
PINEBROOK, N.J. --(Business Wire)--
Alvogen, the international pharmaceuticals company announced today that
it has acquired Dream Pharma ("Dream") in South Korea for US$ 187
million in cash. Dream will be acquired through Alvogen's Asian
subsidiaries and, on completion, will create one of the largest generic
pharmaceutical companies in South Korea. The transaction represents a
significant milestone in Alvogen's stated ambition to become one of the
top five regional players in the APAC market.
Robert Wessman, Chairman and CEO of Alvogen (Photo: Business Wire)
The acquisition of Dream will significantly strengthen Alvogen's
existing business in South Korea, adding a complementary portfolio of
over 100 products. Dream currently has an impressive 35% market share in
obesity products in Korea, with no overlap with Kunwha's current
portfolio in the market. The consolidated business creates a strong
platform for exports and a basis upon which to introduce the Korean
portfolio into other APAC markets.
Alvogen's acquisition of Dream is the third significant acquisition that
the Group has made in APAC since 2012. The transaction will create a
strong platform from which Alvogen can drive revenue and profit growth
across the region. APAC is one of the fastest-growing regions globally
for generic pharmaceuticals. The market remains very fragmented, which
provides an excellent opportunity fr Alvogen to play a leading role in
further industry consolidation, with a focus on building a selective,
hiqh quality product portfolio in markets such as Korea, Taiwan,
Thailand, China, Japan and Vietnam.
The transaction is subject to regulatory approval and closing is
expected in the fourth quarter 2014.
Commenting on the acquisition, Robert Wessman, President and CEO of
"I am delighted to announce this transaction. Dream is an excellent
business and we are looking forward to collaborating with their
high-calibre team as we work to fuel regional growth and to gain scale
in the Korean market and a broader product offering.
Alvogen's business continues to grow from strength to strength in APAC
and our commitment to the region is yielding clear results. This
transaction further underlines our ability to act as a powerful industry
consolidator and demonstrates the momentum we are building towards
becoming one of the top five players in the APAC market."
Alvogen is an international, privately owned pharmaceuticals company
focused on developing, manufacturing and distributing generic, brand,
over-the-counter brands (OTC) and biosimilar products. The company has
commercial operations in over 30 countries with 2,400 employees. North
America is Alvogen's single largest market and other key markets
include: South Korea, Romania, Bulgaria, Hungary, Taiwan, Serbia and
China. Alvogen made its first acquisition in the APAC region in December
2012, when it acquired Kunwha Pharmaceuticals in Korea. In January 2014,
it also announced a transaction where Alvogen merged its Asian operation
with the publicly listed Taiwanese Lotus Pharmaceutical. Alvogen
currently has commercial operations in 11 APAC countries, through its
Market backdrop for editors:
The APAC regional pharmaceutical market is currently valued at around
US$ 84 billion and is expected to grow by about 16% a year over the
coming years. Regional markets are still very fragmented with very few
regional or global players with a foothold. South Korea is a region with
strong fundamentals, including rising domestic GDP, an ageing population
and a growing export market. South Korea is one of the fastest growing
developed markets for medicines in the world, delivering a growth of
over 6% a year since 2010.
The consolidated business of Kunwha Pharmaceuticals and Dream Pharma
creates one of the largest generic pharmaceutical businesses in Korea.
Note to editors:
For more information on Alvogen and to download its logo or images of
senior management, please visit the Alvogen website, www.alvogen.com.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140806005087/en/
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