12
Mon, Apr
68 New Articles

Deal 5: Frontier Pharma Managing Director Kiren Naidoo on Zdravlje Leskovac Acquisition

Deal 5: Frontier Pharma Managing Director Kiren Naidoo on Zdravlje Leskovac Acquisition

Serbia
Tools
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

On January 15, 2021, CEE Legal Matters reported that BDK Advokati had advised Frontier Pharma and the Baystone investment group on the acquisition of Zdravlje Leskovac, a Serbian pharmaceutical company owned by Actavis, which is itself a subsidiary of Israel's Teva. CEEIHM spoke with Kiren Naidoo, Co-Founder and Managing Director at Frontier Pharma, to learn more about the acquisition.

CEEIHM: To start, tell us a bit about Frontier Pharma.

Kiren: We are a UK-based, EMEA-focused pharma investment company with operational expertise spanning major pharma (e.g. GlaxoSmithKline), generic pharma (e.g. MN Pharma), and investment banking (e.g. Merrill Lynch). Our team has a track record in building high-quality international pharma companies and experience in manufacturing and selling pharmaceuticals to both emerging and developed markets, including the US.

CEEIHM: What was it about the target that you found particularly attractive? 

Kiren: There are multiple reasons. The quality of manufacturing is world-class – the company supplies approximately 40 countries around the world across Europe (Western & Eastern), Asia-Pacific, Southern Africa, and Latin America. The company supplies both Teva (its parent) and a range of other multinationals on a contract manufacturing basis. Employees are highly qualified, well-trained, and loyal. The company also has a high-value brand (Zdravlje, which means “Health”) which dates back to the 1950s and is synonymous with quality. This is an ideal spring-board to build a high-quality multinational pharmaceutical company.

CEEIHM: What are your plans for Zdravlje Leskovac in the near and mid future once the deal closes?

Kiren: Our first priority is to expand the company’s contract manufacturing offering as it offers a very attractive quality/price proposition to third parties looking for outsourced supply (which is a growing trend in the business). We have already secured new business in this regard. We would also look to build a commercial business with our own products (Zdravlje-branded) across prescription and consumer health (non-prescription). We would also like to leverage the existing international approvals to expand internationally (across CEE, Asia-Pacific, Middle East, Africa, etc.) to build a more international business. We have a robust organic strategy but will also use M&A / alliances / joint-ventures where it can accelerate our strategy.

CEEIHM: What would you say was the most complex aspect of the deal? 

Kiren: COVID-19 posed multiple logistics and administrative challenges. It also brought about a degree of uncertainty regarding supply chains and demand. There are other traditional complexities that are typical when carving out businesses from broader corporate structures but nothing the principals could not overcome.

CEEIHM: Why did you choose BDK as your advisor on this acquisition?

Kiren: We have worked with BDK before (including on a privatization project in 2016) and in those cases found them to be professional, commercial-minded, pragmatic, and very supportive.

Originally reported by CEE In-House Matters.

Serbia Knowledge Partner

The oldest full service commercial law firm in Serbia, founded in 1991, JPM with three decades of experience in assisting local and international businesses presence and growth not only in Serbia but throughout the SEE region.

We have accumulated a wealth of knowledge in every industrial and corporate sector, from energy to banking, transport, manufacturing and telecommunications, while remaining true to a pioneering spirit that has always drawn us to follow the latest trends and developments in providing of our services to clients. Today we use the latest legal tech available in serving our clients and are expanding our services to clients from growing industries such as renewable energy, IT and life sciences, by offering innovative solutions and a pro-active approach to broaching new grounds.

Our expertise, experience, and commitment to professional excellence mean we are routinely involved in landmark cases and transactions, while our high standing among clients and peers sees us ranked among the leading law firms by independent guides such as Chambers & Partners, Legal 500, and IFLR1000.

We are known for working closely with clients and treating their problems as our own. Our lawyers pride themselves on being team players, fast and available, specialised in terms of practice area and industry, but versatile and creative in their thinking. We believe our advice should be tailor-made and that even the thorniest issue has a legal solution.

Our membership of Lex Mundi (the world’s premiere network of independent law firms) and the TLA (a regional alliance of leading firms from Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia) means we have close working relationships with first-rate firms throughout the region and around the world, enabling us to operate as the perfect hub for SEE and other multi-jurisdictional transactions.

Firm's website: http://jpm.rs/

Our Latest Issue