Malta’s Office for Competition (MCCAA) has declared that the acquisition by Taiwan’s Lotus Pharmaceutical Group of New Alvogen Group Holdings is lawful.

Alvogen Pharma US, a privately held US-based pharmaceutical company, announced a definitive agreement by its shareholders to sell its parent company to Lotus Pharmaceutical. 

The MCCAA received a notification of a proposed concentration this October and found that the concentration “will not result in any substantial lessening of competition, as only a minimal technical horizontal overlap exists.”

Alvogen will therefore become a controlled subsidiary of Lotus, pending customary closing conditions.

In 2015, Alvogen opened its regional headquarters in Malta, although it downsized its operation in 2018 and again in 2020.

It was based at the Life Sciences Park in San Ġwann, but the facility has confirmed to WhosWho.mt that the company no longer operates there.

Lotus Pharma is involved in the commercialisation of novel and generic pharmaceuticals. It has an R&D and manufacturing platform in Asia and has established partnerships globally, such as the U.S., Europe, Japan, China and Brazil. Lotus Pharma runs over a 100 pharmaceutical projects in development and registrations across Asia and the U.S., with over 250 commercial products.

The acquisition by Lotus of Alvagen’s US operations builds on a long-standing collaboration between the two companies, which has already resulted in several successful co-developed product launches.

According to the latest documents, Lotus is active in Malta through contract manufacturing solid dose pharmaceutical products to Adalvo Limited via a licence of products, while Alvogen is is active in Malta through contract manufacturing to Adalvo Limited. 

Alvogen owns the Alvogen U.S. entities and is a private held fully integrated pharmaceutical company which focuses on developing, in-licensing, manufacturing, and marketing pharmaceutical products. Alvogen has over 50 products currently on the market and extensive R&D capabilities.

Through this agreement, Lotus gains access to a strong US commercial platform that includes Alvogen’s dedicated salesforce, in-house manufacturing capabilities at its Norwich, New York facility, and a complementary research and development pipeline.

Lisa Graver, Chief Executive Officer of Alvogen, described the transaction as a natural next step in the company’s growth journey.

“This acquisition represents a culmination of Alvogen’s operational excellence and targeted portfolio aimed at sustainable growth. Joining Lotus positions Alvogen for its next stage of expansion into multiple segments. With Lotus’ global partnerships and APAC distribution, we expect to extend the reach of our specialised generics and brands while maintaining our commitment to quality and reliable supply from our Norwich facility,” she said.

Robert Wessman, Chairman of both Alvogen and Lotus, echoed this sentiment, highlighting the strategic fit and long-term potential of the merger.

“We are excited to combine Alvogen with Lotus Pharmaceutical. This acquisition represents a natural evolution of our partnership and provides our specialty portfolio and dedicated team with a broader platform for growth and impact. Importantly, this deal is also a testament to Lotus’ proven strategy – growing our presence in core areas in APAC and the US, developing new opportunities through B2B and M&A, and bolstering our specialty pipeline,” he said.