Bausch & Lomb to acquire Chinese ophthalmic pharmaceuticals company

Global eye health company Bausch & Lomb has entered into a definitive agreement to acquire a 55% controlling interest in the Shandong Chia Tai Freda Pharmaceutical Group (CTF) from Sino Biopharmaceutical.

The purchase price was US$200m in cash and the acquisition will accelerate Bausch & Lomb's expansion into the rapidly growing ophthalmic pharmaceuticals market in China. Bausch & Lomb has also agreed in principle to a future acquisition of an additional 15% interest in CTF held by two other entities for $54.5m.

The leader in the Chinese ophthalmic pharmaceuticals market, CTF recorded sales of $62m in 2004. It primarily develops, manufactures and markets medications used to treat ocular inflammation and infection, glaucoma and dry eye including the Moisten and Mioclear lines of eye drops.

Since 2001, CTF has recorded compound annual growth of more than 20% percent compared with the overall growth in the Chinese ophthalmic pharmaceuticals market of about 15% during the same period.

'The acquisition of this well-known and respected local pharmaceutical company will significantly enhance our presence in China's ophthalmic pharma market,' said Bausch & Lomb chairman and ceo Ronald L. Zarrella. 'CTF will provide Bausch & Lomb access to a national network of pharmaceutical sales representatives and distributors, strong domestic brands, a GMP-certified manufacturing facility, and expertise in regulatory affairs and product development.'

At its plants in China, Bausch & Lomb, makes and markets China's leading brands of contact lens and lens care products; it also sells its products for refractive and cataract surgeries in China.

The acquisition is expected to close in the third quarter, subject to certain conditions including formal, final approval by the shareholders of Sino Biopharmaceutical, at which time asset valuation and purchase price allocations will be finalised.