IBJNews

Lilly eying deal with Turkish drug company

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co., GlaxoSmithKline Plc and Pfizer Inc. are among about a half-dozen companies interested in buying a stake in Mustafa Nevzat Ilac Sanayii AS in a deal that may value the Turkish drugmaker at $1 billion, three people with knowledge of the situation said.

The owners of Mustafa Nevzat, or MN Pharmaceuticals as the Istanbul-based generic drugmaker is known, have hired Bank of America Merrill Lynch to advise on the sale, said the people, who declined to be identified because the plans are confidential.

Mylan Inc. and Abbott Laboratories are also among the companies interested in bidding, they said. Merrill Lynch has sent so-called teasers to potential bidders, and non-binding bids have begun to arrive, one of the people said, adding that the process started late last year. Preliminary bidding may be completed within two months, one of the people said.

Two other Turkish pharmaceutical companies—Abdi Ibrahim Ilac Sanayi & Ticaret, the country’s largest, and Biofarma Pharmaceutical Industry Co.—have failed in efforts to sell stakes over the past two years. While Glaxo is seeking deals in emerging markets, it’s becoming harder to find acquisitions that make “financial sense,” CEO Andrew Witty said last year.

MN’s owners, the children and grandchildren of the founder Mustafa Nevzat Pisak, have yet to decide whether to sell a minority or majority stake in the closely held company, two of the people said. The owners are seeking a price that values the company at 15 to 20 times earnings before interest, tax, depreciation and amortization, or Ebitda, one of the people said.

Turkey has been a popular target for deals in recent years, with companies seeking to tap its $735 billion economy, which grew 8.2 percent in the third quarter of 2011, the fastest rate among the Group of 20 countries after China.

Zentiva NV, a Czech drugmaker bought by Sanofi in 2009, bought 75 percent of the generic-drug unit of Turkey’s Eczacibasi in 2007 for $613 million, and later purchased the remaining 25-percent stake.

Cengiz Sezen, MN’s chairman, and CEO Levent Selamoglu didn’t respond to e-mailed questions about possible talks or return phone calls seeking comment.

Glaxo, the United Kingdom’s largest drugmaker, is interested in acquiring a pharmaceutical company in Turkey as it struggles to become profitable in the country, the newspaper Hurriyet said Jan. 29, citing Abbas Hussain, the drugmaker’s emerging markets president. Sarah Spencer, a Glaxo spokeswoman, declined to comment on whether MN is a potential target. Spokesmen for Abbott, Eli Lilly, Mylan and Pfizer also declined to comment.

MN was the first Turkish pharmaceutical company to win a license from the Food and Drug Administration to sell products in the U.S., according to the company’s website. International companies sought to do business with Mustafa Nevzat since it acquired the FDA license in 2006, Selamoglu said in an interview Sept. 28.

The company’s products are largely injectable medications, Selamoglu said. They range from antidepressants to diabetic treatments and antipsychotic agents, according to its website.

Eli Lilly and MN were in negotiations that had reached an “advanced stage” to sell drugs in 26 countries in South America, Asia, Europe and Africa, Selamoglu said at the time.

MN generates annual revenue of about $250 million by selling about 100 million boxes of its products in Turkey, Selamoglu said. The country’s drug market was $9.2 billion in 2010, according to the website of the Istanbul-based Pharmaceutical Manufacturers Association of Turkey.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Hello Dear Are you tired of Seeking Loans and Mortgages,have you Been Turned down constantly By your banks and Other Financial Institutions or Micro Finance scheme. This is let you know with 100% guarantee that we Offer loans ranging from $1,000 Minimum to $1,000,000.00 Maximum at 3% interest rate per Month. We give out LOANS for developing business. a competitive edge/business expansion. email address: michealscottloan124@gmail.com We offer the following kinds of loans and many more; * Personal Loans ( Unsecured Loan) * Business Loans ( Unsecured Loan) * Consolidation Loan * Combination Loan * Home Improvement * Xmas Loans for contact to seek for loan email this email address: michealscottloan124@gmail.com Thanks

  2. My name is Mr Henry Josh and i live in the USA California and life is worth living right now for me and my family and all this is because of one man sent by GOD to help me and my family, i once had a life filled with sorrow because my first SON needed a kidney transplant and all our savings were going towards his medications and this normally leaves us with no money to pay our bills or even put enough food on our table and our rent was due and no funds to pay these bills and life felt so unfair to me and every night my wife will cry herself to sleep every night until one day, i was browsing through yahoo answers and i saw a striking advert of a man that gives out personal loans and that the offer is opened to all and i have heard so many things about internet scams but at this point of my life, i was very desperate and ready to take any risk and at the end of the day, i applied for this loan and from one step to another, i got my loan within 12 hours through bank transfer and you know, it was all like a dream and i called Mr Daniel Jones A Man who is the GOD sent lender i found and said, i have received my loan and he smiled stating that to GOD be the glory and i was so shocked as i have never ever seen anyone with such a GOD fearing and kind heart and today, i am the happiest man on earth because by GOD’S grace, my SON kidney transplant was successful and today he is healthy, i and my family are living very comfortable and happy and if you are in my former situation or in serious and legitimate need of a loan, you can reach this GOD sent lender via fidelityloanfirm@outlook.com

  3. Greetings to everyone reading this comment!!! I am Greg William by name. I am out here to recommend the effort of Mark Oscar,I was in need of a consolidation loan amount of 50,000 and as soon as I got in contact with Mark Oscar Loan Firm on Wednesday last week and on Friday last week as well I receive an alert from my bank(Royal Bank of Scotland Group) that the fund was transferred,I want everybody on this site to contact Mark Oscar now via email on how to get a loan because I got my loan from them and I am very happy,so contact them now. Oscarloanfinance@hotmail.com Thanks!!!!!!

  4. Elected officials, like Mourdock, get vested in 8 years. It takes 10 years for all other public employees, most of whom make a lot less money. So much for the promise to finish out his term.

  5. Great state treasurer and a good man!! Just curious if the folks who didn't quite understand his quote would like to tell my daughter-in-law that God didn't intend her! Mourdock's comment was correct but twisted and the article didn't mention that his opponent and the press let the impression stand that Mourdock meant that the rape was intended. Stupid people!!

ADVERTISEMENT