ICI Pakistan plans to acquire Wyeth assets

KARACHI: ICI Pakistan, a leading chemical maker, on Friday expressed its interest to acquire a manufacturing facility and some non-core portfolios of Wyeth Pakistan, a pharmaceutical company owned by US-based Pfizer Inc. 

“ICI is considering a potential acquisition of certain assets of the Pfizer-owned pharmaceutical company,” Saima Kamila Khan, a company’s executive said in a notice issued to the Pakistan Stock Exchange (PSX). “The foregoing remains subject to the completion of due diligence, execution of definitive agreements and receipt of regulatory approvals.”

A Wyeth Pakistan spokesman said the company’s board of directors decided to sell a manufacturing facility, located in the Sindh Industrial Trading Estate Ltd, Karachi, along with certain non-core products.

“The board of directors has also approved to finalise the consideration and other terms of the asset sale transaction, including the definitive transaction agreement with ICI Pakistan Limited, which has shown interest in pursuing the asset sale transaction with Wyeth Pakistan,” said S M Wajeeuddin, a company’s director. Both the officials, however, didn’t disclose the financial details.

In 2009, Pfizer Inc acquired US-based Wyeth LLC. Wyeth Pakistan Limited is listed on the PSX. The company posted a net profit of Rs139.657 million in the quarter ended August 31 as compared to Rs22.936 million in the corresponding quarter last year.

ICI Pakistan is a leading manufacturing and trading company consisting of four diverse businesses, including polyester, soda ash, chemicals and life sciences. The company reported unconsolidated net profit of Rs617 million for the quarter ended September 30.  

There are 695 registered firms in the Pakistan’s foreign-dominated pharmaceutical industry. The industry has seen a rising trend of mergers and acquisition in the recent past.  

In October, ICI Pakistan announced its plans to acquire Cirin Pharmaceuticals Pvt Ltd, which manufactures a range of products. The company has planned registrations in regional markets. It is also discussing partnerships in South East Asia and Africa. In 2010, OBS Pakistan acquired Merck, Sharp and Dohme Pakistan. Sources said the locally-owned pharmaceutical giant also acquired Germany-based multinational Merck Serono.