Abu Dhabi’s Yas Holding increases stake in Icelandic biopharmaceutical firm Alvotech

The European company is estimated to be valued at about $2.25bn upon the completion of transaction

In 2019, Yas Holding acquired a 2.5 per cent stake in Alvotech, which makes biosimilar medicines. Photo: Yas Holding

Abu Dhabi-based investment group Yas Holding has increased its stake in Iceland-based biopharmaceutical company Alvotech.

The company will complete the deal through its division GlobalOne Healthcare Holding, Yas Holding said in a statement on Tuesday. It did not disclose the total value of the deal, which is expected to be completed in the first half of this year.

The combined company is estimated to be valued at about $2.25 billion upon the completion of transaction, Yas Holding said.

Alvotech is expected to receive total proceeds of $450 million from the transaction. It includes $150m from a private placement in public equity backed by Temasek and CVC Capital Partners, and funds managed by Suvretta Capital, among others.

“Three years ago, we recognised the potential for Alvotech, which we expect to be one of the most successful biopharmaceutical manufacturing companies globally,” Murshed Al Redaini, group chief executive of Yas Holding, said.

“Our investment in the expanding company positions us at the forefront of innovative biopharmaceuticals … [this partnership] aligns with our vision to continuously improve access to biopharmaceuticals in the UAE, while serving to strengthen our ongoing investments in the healthcare industry.”

In 2019, Yas Holding acquired a 2.5 per cent stake in Alvotech and signed an exclusive partnership agreement to commercialise its products in the Middle East and North Africa region. The deal was valued at about $45m.

Last month, Alvotech also entered a definitive business combination agreement with a special purpose acquisition company, or Spac, backed by Oaktree Capital Management.

“Alvotech is at the cutting edge of global biopharmaceutical manufacturing and through our exclusive regional partnership, we will be able to localise manufacturing and analytics, while we continue to explore collaboration opportunities with the UAE Ministry of Health, to transfer biopharmaceutical manufacturing and analytics technology to the region,” Ashraf Radwan, chief executive of GlobalOne Healthcare, said.

Alvotech, which has partnered with pharmaceutical companies in more than 50 countries, is focused on the development and manufacturing of biosimilar medicines. A biosimilar is a medical product that is almost an identical copy of an original good that is produced by a different manufacturer.