The world's largest biotechnology company, Amgen, based in Thousand Oaks, California, is to acquire 95.6 percent of the shares in Mustafa Nevzat Pharmaceuticals (MN) for almost $670 million, the American firm said on Wednesday.
“The all-cash transaction will significantly expand Amgen's presence in Turkey and the surrounding region, which are large, fast-growing, priority markets for Amgen,” it said in a written statement. “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,” Robert A. Bradway, president and chief operating officer at Amgen, was quoted as saying in the statement.
Established nearly 90 years ago, MN is the leading supplier of pharmaceuticals to the hospital sector and a major supplier of injectable medicines in Turkey. It also has a successful and fast-growing export business. In 2011, MN's revenue was approximately $200 million and has grown on average at double-digit rates in local currency over the past five years. "This transaction represents an attractive opportunity for MN, its employees and customers," said Levent Selamoğlu, general manager of MN. "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,” he added.
The transaction has been approved by the boards of directors of both companies. Completion of the transaction is subject to the customary closing conditions, including regulatory approval.
Amgen's focus on Turkey and the surrounding region is part of a broad international expansion strategy for the company, the statement said. Amgen established an affiliate in Turkey two years ago and currently markets two products, with others already in the pipeline, ready to be developed for the benefit of patients in the country.