Arrow Pharmaceuticals and Apotex have announced a proposed merger of their Australian and New Zealand generic pharmaceutical and OTC operations.
The proposed merger, still subject to several conditions, including ACCC approval and due diligence, aims to create a sustainable platform for growth and development of the companies’ business interests in Australia and New Zealand. The combined operation will become one of Australia’s leading pharmaceutical companies. The merger is anticipated for completion in the new financial year.
The new merged company will aim to:
- Provide improved sustainability of low-cost generic pharmaceutical supplies to Australian pharmacies and the PBS.
- Expand and diversify each company’s current product portfolios through investment in complex products in key therapeutic areas of growth for pharmacy (biosimilars, monoclonal antibodies, respiratory and autoimmune therapies), and expansion of their respective retail pharmacy product ranges.
- Increase customer engagement through investment in professional programs, training and services, enabling pharmacists to gain access to additional revenue streams;
- Leverage operating costs and operational synergies to build economies of scale.
It is expected that current Arrow Pharmaceuticals Executive Chairman Dennis Bastas, Melbourne, will be appointed Executive Chairman, and Apotex Managing Director, Asia Pacific, Roger Millichamp, Sydney, will assume the role of CEO of the newly merged Australian company.
“Once complete, our 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,” Mr Bastas said.
Mr Millichamp described the move as “a merger of equals who share a common customer-centric culture”, citing that, “both companies are currently in a strong commercial position, but will be better positioned to meet the future challenges of the pharmaceutical industry following the merger, which is still subject to regulatory approval”.