Innobic (Asia) Co, the life sciences arm of national oil and gas conglomerate PTT Plc, has sold its entire stake in its pharmaceutical firm to restructure, aiming to refocus in the segment.
Shares in Alvogen Malta (Out-licensing) Holding (AMOLH), a procurer and distributor of pharmaceutical products and licences in many regions, notably Europe, were bought by Luxembourg-based Floki Holding Société à Responsibilité Limitée, a pharmaceutical and healthcare company.
The transaction is scheduled to be completed within the first quarter.
Innobic holds shares in AMOLH through its subsidiary Alvogen Emerging Markets Holdings.
"This restructuring will facilitate our business which aims to focus mainly on Asia-Pacific," said Buranin Rattanasombat, chairman of Innobic (Asia).
Innobic partnered with Iceland-based Aztiq HK Co last year to jointly acquire Alvogen Emerging Market Holdings, which is a major shareholder in Lotus Pharmaceutical, a Taiwan-based generic drug manufacturing company.
It holds a 37% share in Lotus Pharmaceutical.
"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," said Mr Buranin.
Auttapol Rerkpiboon, president and chief executive of PTT, said the conglomerate will continue to work with AMOLH which will serve as the distributor of pharmaceutical products and licences in many regions, including Europe.
"The divestment will result in AMOLH ceasing to be a subsidiary of PTT, but the business relationship will be carried on," said Mr Auttapol.
Mr Buranin said PTT remains firm on its plan to make life science one of its core businesses.
In 2023, life science-related businesses made a significant return at an estimated 7 billion baht, he said.
Up to 85% of the earnings came from Lotus Pharmaceutical.
Innobic is preparing to build a 1.3-billion-baht production facility of active pharmaceutical ingredients, which contain active ingredients able to relieve illnesses.
Its construction and the process to acquire a pharmaceutical licence is expected to take three years.