Pakistan’s OBS Group is closing in on a deal to acquire local assets of Bayer AG, a German multinational pharmaceutical and biotechnology company, according to Bloomberg.
The Karachi-based firm is close to purchasing a manufacturing facility in Lahore as well as 12 pharmaceutical brands for roughly Rs. 7 billion ($25 million). The group has formed a new unit that is partially owned by employees.
The transaction could be completed within the next few days, according to the report.
Bayer is in the process of transferring its pharmaceutical and consumer health manufacturing plant in Lahore, including other health brands, to another diversified (foreign) company with a strong presence in Pakistan.
According to a recent announcement by the company, impacted Bayer employees in Pakistan have already joined the acquirer with effect from July 1, with a two-year job guarantee and bonuses.
This comes as South Asia is experiencing its worst economic crisis in decades, with record interest rates and sky-high inflation. Shell Plc, one of the oldest bigshots operating in Pakistan, is also selling its stake in its local subsidiary.
French multinational pharmaceutical and healthcare company Sanofi last year sold its majority investment in its local branch for approximately $23 million.
Pertinently, the government’s stance on drug prices in Pakistan has been highlighted as a stumbling block by pharmaceutical companies who’ve so far seized/downsized operations in the country.
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