Privately owned generics drugmaker Alvogen has bought South Korea's Dream Pharma for US$187m in cash, strengthening its position in the Asia-Pacific region.
Dream will be acquired through the US company's Asian subsidiaries and, on completion, will create one of the largest generic pharmaceutical companies in South Korea, says Alvogen.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of this year.
The deal will add a complementary portfolio of more than 100 products to Alvogen's existing business in the region. Dream currently has a 35% market share in obesity products in Korea.
This is Alvogen's third acquisition in the Asia-Pacific region. The company bought Kunwha Pharmaceuticals of Korea in 2012 and this year merged its Asian operations with Lotus Pharmaceutical of Taiwan.
There is currently no overlap between Kunwha’s product portfolio in the Korean market and that of Dream, the company says.
'Dream is an excellent business and we are looking forward to collaborating with its high-calibre team as we work to fuel regional growth and to gain scale in the Korean market and a broader product offering,' says Robert Wessman, President and CEO of Alvogen.
'Alvogen’s business continues to grow from strength to strength in Asia-Pacific and our commitment to the region is yielding clear results. This transaction further underlines our ability to act as a powerful industry consolidator and demonstrates the momentum we are building towards becoming one of the top five players in the Asia-Pacific market.'
Alvogen aims to build a hiqh-quality product portfolio in Korea, Taiwan, Thailand, China, Japan and Vietnam. The company currently has commercial operations in 11 Asia-Pacific countries.
