Egis strengthens presence in Russia by OTC acquisition
Hungarian-based Egis Pharmaceuticals acquired D-Panthenol and women’s health product portfolio from Jadran-Galenski Laboratorij’s (JGL). The company intends to further strengthen its position in major export markets, via select acquisitions.
The transaction demonstrated Egis’s continuous commitment and efforts towards its strategic markets to grow its presence and enter into new segments and therapeutic areas. As its primary export market, Russia has key importance for Egis with sales value reaching about EUR 100 million in its 2015/2016 business year.
The acquired skin repair and wound healing D-Panthenol is the second largest brand in the dexpanthenol market in Russia and becomes Egis’ 4th largest product family and the 2nd largest in its OTC segment, based on turnover. The family of five presentations of dexpanthenol has a strong fit with Egis’ current operational model and existing portfolio in Russia with high synergy potential. Egis endeavors to exploit the full potential of the product by improving its availability for a wider range of customers.
Egis, building on its established presence in the gynecological area, also acquired the Russian gynecology portfolio of JGL (namely Vagilac, Feminal and Folacin) for prevention and treatment of gynecological disorders. The products indicate unexploited distribution potential due to growing market and Egis’ experience in this therapeutic area in Russia.
The value of the transaction was not disclosed, but the turnover of the acquired products was EUR 12 million in 2015. Egis starts distribution in February.
Present in almost 60 countries worldwide; besides Hungary the company sells its products under the brand name Egis in 17 countries through a network of subsidiaries and representative offices in Central Eastern Europe and the CIS (Commonwealth of Independent States) countries. Egis Group’ net sales achieved EUR 536.3 million in its 2015/2016 business year. The current transaction is another successful element of Egis’ strategic objective aiming to strengthen competitiveness by acquisitions in key countries. Prior to this, the company acquired Bayer’s Biovital® portfolio in Poland, which, due to the successful integration and seasonal campaigns, reached 150% growth since then.
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