PTT invests US$50 million in Lotus
Strategic partnership in South East Asia.
The transaction creates a very strong platform to expand market access in the ASEAN region.
Both parties are committed to further collaboration to provide patients with better access to high quality medicines across the region.
Lotus Pharmaceutical (Taiwan TWSE ticker: 1795), an Alvogen company, has announced the issuance of new shares through private placement to be acquired by Innobic (Asia). The move is aimed at further strengthening the company’s market access in the ASEAN region. Innobic (Asia) is a wholly owned subsidiary of PTT Public Company Limited (“PTT”, SET ticker: PTT), the largest publicly listed conglomerate in Thailand. PTT, whose majority owner is the Ministry of Finance in Thailand, is the nation's only company listed in the Fortune Global 500.
New shares via private placement
Under the agreement, Innobic (Asia), PTT's Pharmaceutical and Life Science arm, commits to an investment of approximately US$50 million, to subscribe 17,517,348 new shares via private placement at the price of NT$80.7 per share.
Through this strategic alliance, Lotus and Innobic (Asia) will jointly explore opportunities in the South East Asia pharmaceutical markets, including but not limited to Thailand, Vietnam, Philippines, Malaysia and other ASEAN countries. The partnership combines Lotus’ strong pipeline, wide portfolio, R&D and Business Development capabilities, combined with extensive industry knowledge and high Good Manufacturing Practices (GMP) standards, with Innobic and PTT’s solid market access, local knowledge, creditability, potential commercial network and business relationship.
“This partnership is an important milestone in realizing our vision to establish Lotus as a global leader in generic oral oncology products. Lotus has secured partnerships with many of the leading pharmaceutical companies around the world to market and commercialize our products. The addition of Innobic (Asia) as a shareholder, will further support the long-term growth of Lotus in Asia and its mission to become a global leader in oral oncology.“ Róbert Wessman says.
“PTT Group has continuously expanded our business value-chain to satisfy the changing demands of a diversified and broader customer base. With the rising concern on the importance of healthcare eco-system, it has become a part of our Innobic (Asia)’s strategy to promote innovative medicines in Thailand and South East Asia to improve patient’s access to more affordable medicines with quality. Today’s venture marks yet another successful milestone towards this goal. We are delighted to be partner with Lotus who we trust as leader in the industry.“
Dr. Buranin Rattanasombat, Senior Executive Vice President PTT group and Chairman of Innobic (Asia).