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Alvogen merges Asian operations with Taiwanese firm in $200M asset swap

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Montville-based pharmaceutical company Alvogen is merging Asian operations with Lotus Pharmaceuticals, creating a platform the companies say will increase international growth for both businesses.

The collaboration is the result of an asset swap estimated at $200 million, according to a news release.

Alvogen agreed in December to become the majority shareholder in Taiwanese-based Lotus, acquiring up to 151 million shares for about $200 million, equal to a 67 percent stake.

Lotus in turn is using the proceeds to acquire several Alvogen businesses in Asia, gaining exclusive distribution rights for two high-value biopharmaceuticals in certain Asian markets. The transaction is also estimated at $200 million.

Alvogen makes and develops generic, brand, over-the-counter, and biosimilar products.
The Morris County company said the combination of its territory in the United States, central and eastern Europe, and Asia with Lotus' presence in Taiwan and growing U.S. product pipeline will benefit both companies.

"These transactions will create a significantly enlarged group, which will enhance its market presence in Asia, with a broad product portfolio and international market reach," Alvogen CEO Robert Wessman said in a statement.

Wessman added that Alvogen's investment in Lotus provides "significant opportunities to drive revenue growth, enhance margins and create further value for the two companies."

Specifically, Alvogen said its partnership with Lotus will strengthen its position in Asia with increased reach into China and a new market presence in Japan. Also:

• Both companies will have manufacture and product capabilities in North America, Taiwan, South Korea and Romania.

• Through Alvogen, Lotus will gain a sales and marketing network in more than 30 counties.

• Both companies will collaborate in the United States market.

Both transactions, subject to shareholder and regulatory approval, are expected to close in the second quarter.

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