South Africa-based health and wellness firm Ascendis Health has announced that advanced discussions for the sale of its crown jewel, Cyprus-based pharmaceutical maker Remedica, had fallen through.
The company acquired Remedica in 2016, and while it is a major source of earnings, Ascendis has acknowledged that it has little choice but to sell the unit.
However, a statement on Tuesday also said that it had terminated the negotiations, but remained committed to its disposal.
And that Remedica, in particular, remained a high-quality business that is delivering a sizeable portion of the Ascendis Health group’s earnings growth and cash flow.
As such, the company will continue to work towards disposing of Remedica at a price that is reflective of market value and yields a significant deleveraging of the Ascendis Health group’s balance sheet, it also said.
The company is selling off noncore assets to pay down its debt.
Discussions for the sale of Remedica do not affect its operation with the Cypriot pharmaceutical firm continuing its growth and development, according to Phileleftheros.
Remedica supplies over 300 generic pharmaceutical products for the treatment of diseases such as malaria, or antibiotics, to circa 100 countries.
These are primarily in emerging markets including the Middle East, Asia, Africa and South America and to the World Health Organisation and to the non-governmental organisations Médecins Sans Frontières and the Red Cross.