Apotex Announces Proposed Merger of AUS & NZ Operations

Wednesday, May 9, 2018 General News
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Canada's Largest Pharmaceutical Company Focused on Accelerating Further Growth

TORONTO, May

9, 2018 /CNW/ - Apotex Australia, an affiliate of Apotex Inc., headquartered in Toronto, Canada, today announced a proposed merger of their Australian and New Zealand generic pharmaceutical
and over-the-counter (OTC) operations with Arrow Pharmaceuticals.

The proposed merger, still subject to several conditions, including approval from the Australian Competition and Consumer Commission (ACCC) and due diligence, aims to create a sustainable platform for future growth and development of the companies' business interests in Australia and New Zealand. The combined operation will become one of Australia's leading pharmaceutical companies. The merger is anticipated for completion in the new financial year.

Arrow Pharmaceuticals Pty Ltd is the Australian operating business of Strides Ltd, held through Singapore. Arrow markets a broad range of more than 180 generic pharmaceutical products, and a pharmacy-only OTC products range under the Chemist's Own brand to pharmacies Australia-wide.

With a leading position already in the Australian market, and net sales at a compounded annual growth rate (CAGR) of 30% since FY15 (including sales from distribution deals), this move is part of a larger strategy for Apotex to assess its global footprint as it continues to meet strong demand for its portfolio.

The newly merged company will offer pharmacists, patients and consumers alike, a diverse range of close to 500 products, and permit the expansion of our current product ranges, including OTC and vitamins. The merger, anticipated for completion in the new financial year, will enable the company to:

  • Provide improved sustainability of low cost generic pharmaceutical supplies to Australian pharmacies and the Pharmaceutical Benefits Scheme (PBS);
  • Expand and diversify our current portfolio through investment in complex products in key therapeutic areas of growth for pharmacy (biosimilars, monoclonal antibodies, respiratory and autoimmune therapies), and expand our retail pharmacy product ranges;
  • Increase customer engagement through investment in professional programs, training and services, enabling pharmacists to gain access to additional revenue streams.

Leading this new combined entity will be Roger Millichamp, as Chief Executive Officer. Under Roger's leadership as Managing Director, Asia Pacific and Australia, Apotex has witnessed strong growth. It is expected that current Arrow Pharmaceuticals Executive Chairman, Dennis Bastas, Melbourne, will be appointed Executive Chairman. 

Commenting on the deal, Apotex Global President & COO, Jeff Watson said, "As we continue to focus on driving growth while assessing our global footprint, this proposed merger is an example of how we are creating value in key markets but operating differently."

Mr. Millichamp described the move as "a merger of equals who share a common customer-centric culture", citing, "both companies are currently in a strong commercial position, but will be better positioned to meet the future challenges of the pharmaceutical industry following the merger, which is still subject to regulatory approval.

"Once complete, our merged operation will continue to provide all of the Arrow and Apotex brands that our customers have come to know and trust, and further enhance our customer service and continuity of supply, to better help pharmacists grow their businesses. We, at Arrow, look forward to working alongside the experienced and talented Apotex team to make this a winning combination for all stakeholders," said Mr. Bastas.

About Apotex AustraliaApotex Australia is an affiliate of Apotex Inc., headquartered in Toronto, Canada. Apotex Australia is a leading supplier of generic pharmaceuticals, OTC products and vitamins to the Australian pharmacy market. Apotex Inc. is one of the world's leading generic pharmaceutical companies. The company has over 10,000 employees, exports to more than 115 countries and territories, and operates in more than 45 countries, occupying a significant presence in the US, Mexico and India.

About Arrow PharmaceuticalsArrow Pharmaceuticals Pty Ltd is the Australian operating business of Strides, held through Singapore. Arrow markets a broad range of more than 180 generic pharmaceutical products, and a pharmacy only OTC products range under the Chemists' Own brand to pharmacies Australia-wide. Listed on the BSE (532531) and National Stock Exchange of India (STAR), Strides is a vertically integrated, global pharmaceutical company headquartered in Bangalore, India. The company has a global manufacturing footprint, with seven manufacturing facilities spread across three continents. Strides has strong R&D infrastructure in India, and commercial activities spanning 100 countries.

SOURCE Apotex Inc.

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