PHILAB Holdings Corp. is acquiring a majority stake in local pharmaceutical firm Sydenham Laboratories, Inc. (SLI) in an effort to widen the range of products the company offers.

In a statement issued Monday, the listed firm said it will purchase 67% of SLI, subject to closing requirements of the Philippine Stock Exchange and Securities and Exchange Commission.

“The acquisition of (SLI) enables Philab Holdings to broaden our service offering to the Filipinos. SLI’s specialty in manufacturing pharmaceutical products will enhance our product services, especially in providing universal health care for the Filipinos and expanding the generics line,” Philab Chairman and President Hector Thomas A. Navasero said in a statement.

SLI is the sole company in the country that manufactures hormone-based drugs, and also specializes in oral drug preparation in dosage forms. The company has over 40 years in the medical industry alongside more than 300 certificates of product registration. Its products focus on those for the central nervous system, endocrine system, and cardiovascular system, among others.

Philab plans to maximize synergies with SLI through the launch of a program supporting precision medicine once it closes the acquisition deal. Among Philab’s objectives in acquiring SLI is to develop a new area of pharmacogenomics, which will determine the most effective medication therapy treatment based on a person’s genetic makeup. 

“The future of pharmaceuticals will be personalized through your genetic makeup. It is the goal of Philab Holdings through the acquisition of (SLI) to lead in precision medicine and pharmacogenics in Asia,” Mr. Navasero said.

For its part, SLI said partnering with Philab will result to a more competitive quality of medical products in the Philippine health care market.

“This collaboration will enhance the quality of our product array by delivering more options to the community,” SLI Finance and Administrative Director Nina Atienza said in a statement.

Philab did not disclose the acquisition value for SLI.

On the other hand, the company said its board of directors has also approved the issuance of 100 million common shares out of its unissued authorized capital stock at P2.50 apiece in favor of Epitrek Ventures Ltd.

With this transaction, Philab’s outstanding capital stock will increase to 2.16 billion common shares. Epitrek’s stake in Philab, meanwhile, will increase to 9.2%.

The subscription will allow Philab to raise P250 million, which it said will be used to fund the company’s growth capital, expansion plans, and health care related acquisitions.

“Philab Holdings will focus in rolling out technology that will advance affordable primary health care, diagnostics, and genetics facilities in rural areas,” the company said.

Philab narrowed its net loss attributable to the parent to P107 million in the first nine months of 2017 compared to a loss of P860 million from year-ago levels. Revenues were recorded at P155 million for the period.

Shares in Philab were up by 58 centavos or 18.01% to close at P3.80 apiece at the stock exchange on Monday. — A.B. Francia

RELATED ARTICLESMORE FROM AUTHOR