ARROW and Apotex have announced the merger of their local businesses and operations under a new entity, which they say will "become the leading player in the Australian generic pharmaceutical market by both volume and revenue" (PD breaking news).
According to a statement issued to the Indian stock exchange by Arrow parent firm Strides Shasun, the businesses will continue to be run independently under the Apotex and Arrow brands, and continue to enjoy preferred partner relationships with their respective wholesalers.
They said the combined business will have about 3,200 first line pharmacy accounts, with the deal subject to due diligence as well as approval by the Australian Competition and Consumer Commission.
Arrow's Dennis Bastas will become executive chairman of the merged business while Apotex managing director Roger Millichamp will be ceo, alongside Arrow's Andrew Burgess as chief financial officer "bringing together Australia's most experienced management team with an in-depth knowledge of the Australian generics market".
The proposed structure will be arrived at through a share swap, with the details to be announced when the deal is finalised in the second half of 2018.
Bastas said once complete, the merged operation "will continue to provide all of the Arrow and Apotex brands that our customers have come to know and trust, and further enhance our customer service and continuity of supply, to better help pharmacists grow their businesses.
"We at Arrow look forward to working alongside the experienced and talented Apotex team to make this a winning combination for all stakeholders," Bastas added.
Millichamp said both companies are currently in a strong commercial position, but will be better positioned to meet future challenges after they combine.
"The proposed merger will take the best of both companies, optimise our shared cost base, and maintain the viability of our operations through more effective delivery of medicines and services to consumers and patients," he said.
The hospital business of Apotex will not form part of the merged entity, and will be retained by Apotex, the companies added.
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