ZENTIVA BUYS TURKISH GENERIC DRUGMAKER

Zentiva announced it has signed an agreement to acquire 75 percent of the issued share capital of Eczacibasi Generic Pharmaceuticals, a major domestic pharmaceutical supplier in Turkey, for 460 million euros in cash.

"Turkey is one of the most dynamic pharmaceutical markets globally, and Eczacibasi Generic Pharmaceuticals provides us with a market leading position which I am sure we can leverage successfully," Jiri Michal, chairman and CEO of Zentiva, said. "This will be achieved by introducing our own modern branded generics portfolio and commercializing Eczacibasi Generic Pharmaceuticals' high-quality pipeline."

Turkey's pharmaceutical market is forecast to be one of the world's top 10 pharmaceutical markets by 2010, according to Zentiva. Market growth will be driven by a number of factors, including: ongoing reforms in the Turkish healthcare sector; increasing use of modern branded generic products; and increasing consumer purchasing power.

Eczacibasi's generics business offers a diversified product portfolio of branded generics, as well as contract manufacturing and warehousing services. Last year the company had sales of more than 200 million euros. The company has one of the largest sales forces in Turkey consisting of approximately 550 representatives, which Zentiva plans to further expand.

The transaction is subject to certain conditions, including the approval of Zentiva's shareholders and the approval of the Turkish Competition Board.

Last week Zentiva also announced its purchase of sanofi aventis' assets in Hungary, and the company already has presence in the Czech Republic, Slovakia and Romania.