Pharmstandard OJSC Completes Transaction to Acquire Bever Pharmaceutical

Pharmstandard OJSC has completed a transaction to acquire a 100% share capital in Bever Pharmaceutical in Singapore. Earlier this month, Pharmstandard announced plans to acquire Bever Pharmaceutical.

The amount of the transaction is $590 million. The transaction will be funded by the combination of Pharmstandard’s shares and global depository receipts (GDRs) owned by Pharmstandard-Leksredstva OJSC in the amount of $542 million and cash of $48 million, which may be financed from external sources. Pharmstandard-Leksredstva OJSC currently holds Pharmstandard's shares and GDRs on its balance sheet at approximately $475 million. The company expects that all settlements will be finalized by the end of December 2013.

Pharmstandard acquired Bever to bolster its over-the-counter (OTC) business, which includes securing a long-term fixed cost supply of two OTC APIs. It is expected that Bever will be included in a proposed spin-off of Pharmstandards OTC business.