Innobic divests Alvogen Malta shares, refocuses on Asia-Pacific pharmaceutical market

Picture courtesy of Bangkok Post

In a strategic move to refocus its pharmaceutical sector, Innobic (Asia) Co, the life sciences division of the PTT Plc national oil and gas conglomerate, has entirely divested its shares in Alvogen Malta (Out-licensing) Holding (AMOLH). The shares were acquired by Floki Holding Société à Responsibilité Limitée, a healthcare and pharmaceutical firm based in Luxembourg. The transaction is expected to be finalised within the first three months of the year.

AMOLH, a company dealing in the procurement and distribution of pharmaceutical products and licenses across various regions, most notably Europe, was held by Innobic through its subsidiary, Alvogen Emerging Markets Holdings.

Buranin Rattanasombat, chairman of Innobic (Asia), explained that this restructuring aims to streamline the company’s focus primarily on the Asia-Pacific region. Last year, Innobic entered a joint venture with Iceland’s Aztiq HK Co to acquire Alvogen Emerging Market Holdings, a significant stakeholder in Lotus Pharmaceutical. Lotus, a Taiwan-based generic drug manufacturing company, is 37% owned by Innobic, reported Bangkok Post.

“The divestment in AMOLH aligns with PTT’s strategy to enhance our business footprint in Asia-Pacific, aspiring to become a leading pharmaceutical company in Asia, while AMOLH will carry on focusing on the rest of the world.”

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PTT President and Chief Executive Auttapol Rerkpiboon affirmed that despite AMOLH no longer being a PTT subsidiary, the business relationship will continue, with AMOLH serving as the distributor of pharmaceutical products and licenses across various regions, including Europe.

PTT remains committed to making life science one of its core businesses, Buranin stated. In 2023, life science-related businesses yielded an estimated return of 7 billion baht (US$199,837,260), with Lotus Pharmaceutical accounting for up to 85% of the profits.

Innobic is currently planning to construct a 1.3-billion-baht (US$37,091,990) production facility for active pharmaceutical ingredients, elements that alleviate illnesses. The construction and the process to secure a pharmaceutical license is anticipated to take three years.

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