Pfizer seen circling top Turkish drug company
From Acquisitions Monthly
Pfizer, the worldâ€™s largest pharmaceuticals company, is lining up Turkeyâ€™s largest drugs company, Abdi Ibrahim, for a deal, according to an M&A banking source.
There are no talks so far, and what form a potential tie-up would take is not yet known.
Only last month the president of Pfizerâ€™s emerging markets business unit revealed that the drugs company was considering new acquisitions.
â€śWe see opportunities coming from the financial crisisâ€¦ opportunities to build partnerships in emerging markets,â€ť
Jean-Michel Haldon told Reuters in June. He did not give further details at the time, but under the stewardship of chairman and chief executive Jeff Kindler, Pfizer wants to add $3 billion in annual revenue by 2012 from emerging markets, which include China, Brazil and Turkey.
Family-owned Abdi Ibrahim â€“ which is run by its president Nezih Barut and has annual sales of around $850 million â€“ would certainly provide Pfizer with that additional source of income.
Turkeyâ€™s pharma market also remains hugely fragmented and is ripe for consolidation.Â Abdi Ibrahim may be Turkeyâ€™s market leader, but it only has 7 percent of the countryâ€™s estimated $11 billion pharmaceutical market.Â Hot on its heels are the likes of Novartis and Sanofi-Aventis.
The big multi-nationals are increasingly looking to the developing markets for growth as they face stiffer competition from generic drug makers, patent expiries, and a pressing need to reinvigorate their drug pipelines â€“ all reasons why Pfizer bought Wyeth in January for $68 billion.Â Pfizerâ€™s best-selling anti-cholesterol drug Lipitor indeed expires in 2011. While a source close to Pfizer would neither confirm nor deny the companyâ€™s bid interest, Pfizerâ€™s chief spokesperson Ray Kerins predictably would not comment on what he described as rumor. As for Abdi Ibrahim, all of its 2829 employees seem to have gone off on holiday.Â Â â€śWelcome to Abdi Ibrahim,â€ť said a corporate voice mail.Â â€śAbdi Ibrahimâ€™s headquarters will be closed from 6 to 20 July due to corporate summer vacation.â€ť