November 3, 2015

 

Zoetis to acquire aqua health leader PHARMAQ

 

 

           


 

Zoetis Inc. has agreed to purchase PHARMAQ, the global leader in vaccines and innovation for health products in aquaculture, for US$765 million on a debt-free basis.

 

Acquiring PHARMAQ strengthens Zoetis' core livestock business, giving the company a market-leading presence in the fastest growing segment of the animal health industry.

 

PHARMAQ is the market leader in sales of vaccines for farmed fish, a market segment growing 10% annually. The company generated revenues of approximately US$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 about 200 employees, is based in Oslo, Norway, and has subsidiaries in Chile, the United Kingdom, Vietnam, Spain, Turkey, Panama, and Hong Kong.

 

PHARMAQ's late-stage development pipeline includes important new vaccines and next-generation parasiticides expected to enter the Norwegian, Chilean and UK markets in the near term.

 

With this acquisition, Zoetis adds vaccine brands such as AlphaJect® (an injectable vaccine) to its diverse portfolio of more than 300 product lines. It also adds parasiticides such as AlphaMax® to protect farmed salmon from sea lice. PHARMAQ diagnostic products complement the Zoetis diagnostics business and support customers with early detection of infection and rapid response through more customised solutions. PHARMAQ also provides dip/immersion vaccines, therapeutics, and technical support services tailored to the needs of farmed fish operations.

 

"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," said Alejandro Bernal, Executive Vice President, Strategy, Commercial and Business Development for Zoetis.

 

Zoetis expects to complete the acquisition around November 10, 2015, and it intends to draw on its revolving credit facility to finance the transaction. Inclusive of financing costs, Zoetis expects the transaction to be neutral to adjusted earnings in 2016 and become accretive to adjusted earnings thereafter.

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