Sanovel Up For Sale

Turkish generic drug maker Sanovel has been put up for sale by parent Toksoz Holding and could fetch between $500 million and $1 billion, three sources close to the matter told Reuters.

Toksoz, which has interests in the food and pharmaceutical sectors, has hired J.P. Morgan Chase, Istanbul-based Alpacar Associates and U.S. boutique adviser Greenhill to find potential buyers for the business, the sources said, speaking on condition of anonymity as the matter is not public.

Sanovel, one of the top 10 pharmaceutical firms in Turkey, is likely to attract industry players rather than financial buyers, one of the sources said, without elaborating.

Sanovel and Alpacar were not immediately available for comment. J.P. Morgan and Greenhill declined to comment.

"The seller is getting prepared now. Sanovel will come to the market in autumn," said a second source.

A third source said a $1 billion valuation was "reasonable," adding a bidding process for the sale was yet to begin.

Turkish drugmakers are attracting international investors as the country's population and economy grows.

U.S. biotech company Amgen agreed to buy Turkey's Mustafa Nevzat Pharmaceuticals, a maker of injectable generic drugs, for around $700 million last year.

The Turkish government is aiming to turn the country into a top 10 player in health services by 2023 by increasing research and development spending to 3% of gross domestic product.

While the Turkish pharmaceutical sector is ranked 16th in terms of market value, it is 36th in terms of the clinical research conducted and the volume of pharmaceutical exports, according to Turkey's Association of Research-Based Pharmaceutical Companies (AIFD).