WE MAKE AQUACULTURE PROGRESS
November 2, 2015 - Zoetis to Acquire PHARMAQ, the Global Leader in Vaccines
- Purchase price of $765 million on a debt free basis
- Strengthens PHARMAQ’s global reach to bring premium fish and aquatic health solutions to its customers world wide
- Enables PHARMAQ’s strategy execution to bring existing and late-stage pipeline products to new markets and species
- Empowers PHARMAQ to maintain its market leading position with its industry-leading health solutions for farmed fish, fastest growing segment of animal health industry
November 2, 2015
Pharmaq Media Contact
+47 99 56 09 25
Zoetis Media Contacts
OSLO/OVERHALLA., November 2, 2015 – PHARMAQ (OSE:PHQ) today announced an agreement under which PHARMAQ, the global leader in vaccines and innovation for health products in aquaculture, is acquired by Zoetis for a price of $765 million on a debt-free basis. The acquisition enables PHARMAQ to maintain and strengthen its global leadership position in the fastest growing segment of the animal health industry. Zoetis is purchasing PHARMAQ from a company owned by Permira IV, a fund managed by global investment firm Permira, which has been the majority owner of the company since 2013.
PHARMAQ is the market leader in sales of vaccines for farmed fish, a market segment growing 10% annually. PHARMAQ has a worldwide reputation for addressing customer needs and fast time to market with industry relevant products. The company generated revenues of approximately $80 million in 2014 and has a presence in the major aquaculture markets in the world. PHARMAQ revenue grew at a compound annual growth rate of 17% from 2005 to 2014. Privately-held PHARMAQ has approximately 200 employees, is based in Oslo, Norway, and has subsidiaries in Chile, the United Kingdom, Vietnam, Spain, Turkey, Panama, and Hong Kong.
“We see a tremendous opportunity to grow our business as part of Zoetis,” said Morten Nordstad, Chief Executive Officer at PHARMAQ. “Zoetis has proven expertise in supporting livestock producers with high-quality products and technical services that help improve animal health, productivity and profitability. By combining our experience and R&D capabilities, we believe we can optimize our industry leading ability to develop vaccines and medicines for farmed fish. With Zoetis’ global footprint, we can deliver greater value to more customers around the world and accelerate our geographic expansion plans. This acquisition is a testimony to our success and to the highly skilled, innovative and hard-working employees of PHARMAQ.”
“This acquisition is a great strategic fit that brings to Zoetis an animal health leader with similar competitive advantages – an industry-leading portfolio, strong customer relationships, and world-class innovation and manufacturing,” said Zoetis Chief Executive Officer Juan Ramón Alaix. “We are gaining a new platform for growth and value creation that we can expand. PHARMAQ strengthens our core livestock business by providing market leadership in aquatic health and a strong late-stage pipeline in the world’s largest category of protein and fastest growing animal health market.”
Aquatic Health – The Fastest Growing Animal Health Segment
The market for aquatic health products serving aquaculture was valued at approximately $400 million in 20141 and has been growing 7 to 8% annually.1 This growth rate is faster than the overall livestock segment, which is growing at 6% CAGR, and the companion animal segment which is growing at 5% CAGR.2
Fish remains the most consumed animal source of protein worldwide. Farmed fish accounts for about 50% of total fish consumption up from 15% in 1990.3 Moreover, current medicalization rates for fish rank at the lowest level of any livestock category. Healthcare spending is expected to increase as productivity of fish farming becomes more efficient to address the rising global demand for protein.
“We are excited to welcome the team from PHARMAQ, who share our passion for supporting customers and keeping livestock healthy and productive,” said Alejandro Bernal, Executive Vice President, Strategy, Commercial and Business Development for Zoetis. “To ensure its continued success, the PHARMAQ business will run largely as a stand-alone operation within Zoetis and maintain its focus on critical customer needs and R&D milestones.”
The acquisition is expected to be completed on or about Nov. 10, 2015.
PHARMAQ is the world's leading pharmaceutical company supplying the aquaculture industry. The company provides environmentally sound, safe and efficacious health products to the global aquaculture industry through targeted research and the commitment of dedicated people. The vaccines are manufactured in a state of the art production facility in Overhalla and Oslo, Norway. Administration and research and development activities are based in Oslo with subsidiaries in Norway, Chile, United Kingdom, Vietnam, Turkey, Spain, Panama and Hong Kong. PHARMAQ has approximately 200 employees. The company's products are marketed in Europe, North and South America, and Asia. PHARMAQ's majority shareholder is the private equity investment firm Permira Funds. Management and employees hold a significant stake in the company. For further information, please visit our website: www.pharmaq.com
Zoetis (zô-EH-tis) is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 60 years of experience in animal health, Zoetis discovers, develops, manufactures and markets veterinary vaccines and medicines, complemented by diagnostic products and genetic tests and supported by a range of services. In 2014, the company generated annual revenue of $4.8 billion. With approximately 10,000 employees worldwide at the beginning of 2015, Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals with sales of its products in 120 countries. For more information, visit www.zoetis.com.
Forward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Pharmaq with respect to business plans or prospects, future operating or financial performance, expectations regarding products, future use of cash and dividend payments, and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Pharmaq expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
1 Based on Zoetis data on file
3 Food and Agriculture Organization of the United Nations.
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