not vested
CCM Duopharma to buy 6 pharmaceutical units for RM245.1mil
KUALA LUMPUR: CCM Duopharma Biotech Bhd (CCMD) is set to become one of Malaysia's largest pharmaceutical manufacturers following its purchase of six pharmaceutical units from parent company, Chemical Company of Malaysia Bhd (CCM) for RM245.1 million.
The deal will see CCMD taking over CCM Pharmaceuticals Sdn Bhd, CCM Pharma Sdn Bhd, Innovax Sdn Bhd, Upha Pharmaceutical Manufacturing (M) Sdn Bhd, CCM International (Philippines) Inc and CCM Pharmaceuticals (S) Pte Ltd.
The acquisition which has been several years in the planning will allow CCMD to enhance its product offerings and scale via the combined production facilities.
The deal will be beneficial for both CCMD and CCM and bring value to their shareholders, CCM said in a statement today.
"The acquisition will give us greater manufacturing capacity and flexibility to cater to the growing demand for generic medicines, thus allowing us to bid for larger contracts," said CCMD Chief Executive Officer Leonard Ariff Abdul Shatar.
He said the company was confident of keeping its margins healthy as it ventures into new niche segments of the industry including biotherapy and biologics, specifically erythropoietin (EPO) and insulin.
CCMD will undertake a renounceable rights issue of 139.48 million new shares at RM1.40 each to raise RM195.27 million to fund the acquisition.
CCMD is a subsidiary of CCM and is a key player in the fertilisers, chemicals and pharmaceuticals industries.
Source: Bernama