Grifols to acquire German healthcare company Biotest for €1.6bn

Spanish pharma company Grifols has agreed to acquire Tiancheng (Germany) Pharmaceutical, which holds nearly 90% stake of German publicly listed healthcare company Biotest.

The deal values 100% of Biotest at €1.6 billion.

Grifols will acquire Tiancheng (Germany) Pharmaceutical from Hong Kong-registered Tiancheng International Investment.

The consideration is made up of €773 million and a loan of €313 million.

The Spanish pharma company has launched a voluntary public tender offer to acquire Biotest’s remaining ordinary and preferred shares from all outstanding ordinary and preferred shareholders for €43 and €37, respectively, in cash.

German healthcare company Biotest to be acquired by Spanish pharma company Grifols. Photo courtesy of Biotest AG.

Biotest specializes in hematology and clinical immunology solutions. It has a pipeline of 12 novel proteins that are said to complement the product portfolio of Grifols.

The German firm also develops monoclonal antibodies for cancer of plasma cells and systemic lupus erythematosus, which are produced by using recombinant technologies.

Biotest and Grifols when combined together will boost the availability of plasma therapies, thereby enabling increased patient access to plasma medicines around the world.

The acquisition is said to considerably strengthen Grifols’ industry capabilities by improving its plasma-derived medicines access, pipeline, and sales footprint.

It will also provide the Spanish pharma company access to new scientific and industrial capabilities. Besides, it will boost its plasma economics and revenue per liter to bring innovative plasma proteins to facilitate revenue growth and margin expansion.

Grifols will expand and diversify its plasma sourcing as well by adding 26 European plasma centers and reinforce its operations and revenues in Europe, the Middle East, and Africa (EMEA) region.

Raimon Grífols Roura — co-CEO of Grifols said: “This unique opportunity will allow Grifols and Biotest to mark a new milestone while shaping the plasma industry. It will enlarge our existing portfolio of plasma-derived therapies and fast-track the development of new products, with a concerted focus on delivering value to patients, shareholders and other key stakeholders.”

The deal, which is subject to regulatory approvals and other conditions, is anticipated to close by the end of the first semester of next year.