Citigroup and Two Co-Investors Planning Sale of Biofarma

Turkey’s Biofarma, a leading generic drug maker, appears to be on the sale block as the company’s three co-owners have distributed short sale documents and brought on JPMorgan to advise on the transaction. Citigroup Venture Capital International (CVCI) joins co-investors Partners in Life Sciences (PiLS) and Global Finance in hopes to get as much as USD 500 million out of the deal. CVCI and PiLS originally acquired Biofarma in 2007 for roughly USD 200 million. Speculated to be among the interested suitors are Abbott Laboratories, GlaxoSmithKline, Pfizer, Teva Pharmaceutical Industries, and Sandoz,

Biofarma (www.biofarma.com.tr)
Biofarma is one of the leading pharmaceutical companies in Turkey as well as one of the oldest. It was established in 1945 in Istanbul’s Mercan district. The company produces drugs for immunology, radiology, infectious diseases, men’s and women’s health, rheumatology, urology, and more.

As of 2008, Biofarma employed just under 750 at 10 regional directorates.

Citi Venture Capital International
CVCI operates as part of Citigroup’s alternative investment arm, Citi Capital Advisors. The firm was established in 2001.

CVCI typically acquires controlling stakes in target companiess, preferring the business services, IT, financial services, pharmaceutical, renewable energy, retail, and telecom sectors.

CVCI portfolio companies can be found in Central and Eastern Europe, the Balkan and CIS regions, Asia, and Latin America. The firm is based in London and has eight other offices around the world.