Super-Pharm, Teva partner on medical supplies activity

Super-Pharm branch

Super-Pharm is buying a 50% stake in Teva's pharmaceutical preparations business supplying hospitals and patients at home.

Super-Pharm (Israel) Ltd, the drugstore chain owned by Leon Koffler, is buying 50% of the pharmaceutical preparations business of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) for a sum in the tens of millions of shekels. The business consists of the preparation of specialist drugs for use in hospitals and in patients' homes. For the purpose of the partnership the two companies have set up a new company called Remedix.

The new company, held in equal shares by Super-Pharm and Teva, is based on Teva's pharmaceutical preparations center and its "Teva Home" service, which supplies fluid compounds for treatment at home or in hospital, among them antibiotics and chemotherapy, as well as food for premature babies. The plant's annual sales turnover is estimated at some NIS 100 million, and for the time being it will remain at its existing location in Ashdod.

Remedix will be headed by Shay Shabat, until recently pharmacy operations manager at Super-Pharm. The existing pharmacists team will continue to operate.

The pharmaceuticals preparations team has operated for more than 30 years. It currently provides services and products to all the hospitals and health funds in Israel and to patients treated at home, and is a dominant player in Israel in intravenous food drips and sterile preparations, transfusion bags, and sterile syringes. The plant employs about 50 people.

Super-Pharm began talks with Teva on acquiring or partnering this business three years ago, but meanwhile Teva froze all its activity and the negotiations halted.

The activity is tangential to that of Super-Pharm's Super-Pharm Professional business, with an estimated 5% overlap. Super-Pharm Professional is a pharmaceutical laboratory that prepares tailor-made drugs according to doctors' prescriptions for patients where there is no justification for production in commercial quantities.

Against the background of the shortage of hospital beds in Israel, Teva and Super-Pharm see potential in making treatments accessible to patients at home.

Published by Globes, Israel business news - en.globes.co.il - on September 1, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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