Sistema to acquire pharmaceutical companies Sintez and Biocom from Marathon Group.

Sistema, a publicly traded diversified Russian holding company, agreed to acquire pharmaceutical companies Sintez and Biocom from Marathon Group. Financial terms were not disclosed. Andrey Dubovskov, President and Chief Executive Officer of Sistema, said: “The acquisition of Sintez and Biocom represents an attractive investment opportunity for Sistema. Both companies possess solid market positions. Moreover, we see an excellent opportunity to generate synergies through their combination with OBL Pharm and Binnopharm. The transaction will lead to the creation of one of Russia’s largest pharmaceutical companies, possessing a diversified product portfolio, experienced management team, powerful manufacturing base as well as significant R&D potential. The merger will also drive optimisation of marketing and promotion costs, cuts in administrative expenses and an expansion of the sales geography, which in sum will result in growth in the value of Sistema’s stake in the business.”