Mega Lifesciences, a leading producer of nutritional supplements and prescription and over-the-counter medicines, has acquired the Eugica brand in Vietnam.
The strategy is underpinned by the company’s intention to list on the Stock Exchange of Thailand.
Chief executive officer Vivek Dhawan said that with almost 3,500 staff across Thailand, Myanmar, Vietnam and Cambodia, the Indochina region makes up more than three-quarters of Mega’s workforce and more than 75 per cent of its revenue. “The region is the biggest and most important for Mega Lifesciences, and one in which we see outstanding growth opportunities.”
Eugica is Vietnam’s No 1 traditional herbal cough medicine. The acquisition will see Hau Giang Pharmaceutical (DHG) continuing to manufacture Eugica in Vietnam, which will be combined with Mega Lifesciences’ global distribution network, branding, and marketing expertise.
“The acquisition of the Eugica brand is a prime example of our business strategy to [take] advantage of consolidation in the highly fragmented pharmaceutical industry in frontier and emerging markets,” Dhawan said.
In Myanmar, Mega Lifesciences is already the largest distributor of pharmaceuticals, vitamins and supplements, and one of the leading distributors of consumer products.
In Thailand, organic growth will be complemented by manufacturing expansion designed to boost the position of the company’s top products, including its Nat B, Nat C, and Fish Oil capsules, which are the best-selling products in their category, as well as Gofen, the country’s top-selling brand of ibuprofen.
In a listing application recently submitted to the Securities and Exchange Commission, Mega Lifesciences stated its plan to issue 216.31 million shares (par value Bt0.50 each), of which 129.78 million will be new shares and the remaining 86.52 million shares those of existing shareholders.