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New acquisition to expand Amgen's presence in Turkey
THOUSAND OAKS, Calif.—Amgen and Istanbul-based Mustafa Nevzat Pharmaceuticals have announced an agreement by which Amgen will acquire 95.6 percent of shares in Mustafa Nevzat for $700 million in cash. The acquisition of the privately held Turkish company gains Amgen a larger foothold in Turkey and surrounding areas, which represent priority markets for the company.
"This transaction represents an attractive opportunity for MN, its employees and customers," Levent Selamoglu, general manager and CEO of Mustafa Nevzat, said in a press release. "The combination of MN and Amgen creates an innovation leader in Turkey with unique capabilities and scope to expand regionally and in other attractive high-growth markets. Amgen's focus and resources will also ensure continued investment in Turkey."
Mustafa Nevzat has nearly 90 years in the area and stands as the leading supplier of pharmaceuticals to the hospital sector in Turkey, as well as a major supplier of injectable medicines in Turkey. The company has four dedicated production plants "for finished dosage forms" in Istanbul, for the production of "injectables such as liquid and freeze-dried ampoules and vials, sterile powder vials and oral dosage forms such as hard gelatin capsules, tablets, film-coated tablets and dry powder suspensions," the company reports on its site. It has roughly 2,000 personnel, and reported revenues of approximately $200 million in 2011, growing, on average, at double-digit rates in local currency over the past five years.
"Amgen is dedicated to making our innovative medicines available to patients in major markets around the world," Robert A. Bradway, president and chief operating officer of Amgen, said in a press release. "Together with MN's staff and management team, we plan to grow our business with high quality and innovative medicines in Turkey and the surrounding region."
Amgen's interest in Turkey and surroundings regions is part of its international expansion strategy, and in 2010, it established an affiliate in Turkey, marketing two products.
The transaction follows other recent acquisitions for the company this year as it works to expand. Amgen announced on Jan. 26 that it would be acquiring biotechnology firm Micromet, Inc. for $11 per share in cash, for an approximate total of $1.16 billion. The acquisition gained Amgen Micromet's proprietary Bispecific T cell Engager (BiTE) platform, including blinatumomab, a phase II BiTE antibody indicated for the treatment of acute lymphoblastic leukemia as well as non-Hodgkin's lymphoma. The company announced the completion of its tender offer for the outstanding share of Micromet on March 7.
In another, more recent transaction, Amgen also announced plans earlier this month to acquire South San Francisco-based KAI Pharmaceuticals for $315 million in cash. The acquisition gains Amgen KAI's lead product candidate KAI-4169, an experimental therapy for the treatment of secondary hyperparathyroidism in patients suffering from chronic kidney disease who are on dialysis.
As for the acquisition of Mustafa Nevzat, the boards of directors of both companies have approved the transaction. The acquisition is subject to customary closing conditions, including regulatory approval.