CVC seeks options for drugmaker Alvogen

HONG KONG: Alvogen’s private equity owners including CVC Capital Partners are exploring options for the generic pharmaceutical company, which could be valued at about US$4bil, according to sources

The controlling shareholders of the drugmaker had held on-and-off talks with Shanghai Pharmaceuticals Holding Co focusing on a sale of Alvogen’s US business, the sources said.

Alvogen would keep its operations in Asia as well as central and eastern Europe, one of the people said, asking not to be identified because the information is private.

While they are not running a formal auction process, Alvogen’s owners may look to hold discussions with other international buyers, the people said. Deliberations are at an early stage, and there’s no certainty they would lead to a transaction, according to the sources.

A consortium including CVC and Singapore state investment company Temasek Holdings Pte Ltd bought a controlling stake in Alvogen in 2015 for about US$2bil.

Shanghai Pharma has stepped up its hunt for investments after missing out on the purchase of German generic drugmaker Stada Arzneimittel AG.

The company is currently bidding for a stake in Arbor Pharmaceuticals LLC as well as Cardinal Health Inc’s Chinese distribution business, it is learnt.

The biggest market for Alvogen is the US, where it sells generic pharmaceuticals and provides third-party services such as contract manufacturing and clinical research. It operates a manufacturing facility in Norwich, New York under the Norwich Pharmaceuticals brand.

Alvogen has 350 marketed products spanning a range of therapeutic areas including oncology, cardiology, respiratory and neurology, according to its website.

It develops, manufactures and sells generic drugs, branded medicines, biosimilar products and overthe-counter products like cosmetics and food supplements.

The company also has a plant in Romania and a packaging centre in Serbia.

It has made three acquisitions since 2012 in Taiwan, where it operates under the Lotus Pharmaceuticals brand, and South Korea combined.

Part of its Asian operations are listed as Seoul-traded Alvogen Korea Co, which has a market value of about US$286mil. — Bloomberg