The world’s largest biotechnology company Amgen has purchased close to 96% of Turkish Mustafa Nevzat Pharmaceuticals for nearly $700 million as part of its goal to expand into emerging markets.
The deal, which has been approved by both Amgen and MN Pharmaceutical senior management boards, creates a company capable of expanding regionally and attracting new markets. In a statement released to the press, Amgen said the purchase will boost its image in Turkey and is part of a broad international expansion strategy.
Amgen currently markets two products in Turkey from an affiliate it established in 2010.
The Turkish market for pharmaceuticals is growing as the country’s economy grows. Turkey is the third-fastest growing country in the Group of 20 with a $772 billion economy.
Istanbul-based MN Pharmaceuticals has been growing at an average rate of 10% annually for the past five year, and is Turkey’s largest supplier of hospital pharmaceuticals and injectable medicine. It also operates an export business. Founded in 1923, it is the first Turkish company to win approval from the Food and Drug Administration to sell drugs in the U.S., recently logging sales of $200 million in 2011. MN Pharmaceuticals has 1,200 employees.
Trend: Biotech Acquisitions
Amgen’s purchase of MN Pharmaceuticals is just the latest acquisition in the biotechnology market as more and more companies in the industry merge to offset price cuts and patent expirations.
MN Pharmaceuticals, which is privately held, put its stake up for sale last year, but when talks to form a partnership with Eli Lilly fell through the company was put up for sale. In the past two years, two other Turkish pharmaceutical companies have unsuccessfully tried to sell stakes in their businesses.
Earlier this year Amgen signed a deal with AstraZeneca Plc to sell its bone drug Xgeva, and it also purchased Micromet Inc. for its experimental leukemia drug.
Key Statistics - Global Biotechnology Industry (source: MarketLine)
- In 2010, the global biotechnology market grew 8% and reached a total value of around $250 million.
- In 2015, the global biotechnology market is predicted to be valued at close to $400 million. This represents an increase of 60% from 2010.
- The largest segment of the global biotechnology market is medical/healthcare, which accounts for 67% of total market value.
- Nearly half of the global biotechnology market value is held by the Americas.