Polpharma gets anti-trust clearance for acquiring Bioton’s antibiotics division

2010-02-18

The Office of Competition and Consumer Protection (UOKiK) on 12 February gave the green light for Polpharma to acquire Bioton’s antibiotics business.
Bioton estimates the value of the unit – whose flagship product is Biodacyna, an antibiotic eye medication – at PLN 90-110m (€22.2-27.2m). Anti-trust clearance for the deal was a foregone conclusion, given that the market share of Polpharma - the largest domestic drug maker and number three pharmaceutical manufacturer in Poland overall - is only about 4.5%, while Bioton derives only about 25% of its revenues from antibiotics. The biotech firm is divesting non-core assets to reduce its debt load and fund drug development.
Meanwhile, the two firms have given themselves until the end of the month to decide about a possible full merger, under a letter of intent signed in November. In it, Bioton and Polpharma agreed to explore several strategic options, which apart from the antibiotics deal and a merger also include a sale to Polpharma of Bioton’s Italian subsidiaries, Fisiopharma and Pharmatex, for which the biotech firm had paid a total of PLN 50m (€12.4m). A feasibility study of a potential merger was to be completed by 15 December (a deadline apparently missed as the focus shifted to the antibiotics sale), and the parties undertook to decide on its viability and basic parameters until 28 February.