IP Successfully Acquires “Modern Pharma”, Enhancing Competitiveness and Profitability

Inter Pharma Public Company Limited (IP) announced that on November 27th, 2020, the Company has successfully negotiated and has reached agreement the acquisition of Modern Pharma Co., Ltd. and has signed a Shares Purchase Agreement which later resulted in Modern Pharma Co., Ltd. to become a subsidiary of IP.

 

In the essence of the acquisition, IP has negotiated for the benefit of the Company additionally on sales guarantee that is based on the Seller’s Best Effort Basis as previously reported. 

 

The Company has negotiated for the seller to guarantee sales of not less than 200 million Baht in 2020 and 2021. If the sales amount is less than 100 million Baht, the seller must take responsibility for the compensation of 20 million Baht. But if the sales are higher than 100 million Baht but less than 200 million Baht, the seller will have to compensate 10% of the difference of the sales that has not yet been reached the amount of 200 million Baht. 

 

Therefore, in the acquisition of such businesses, IP is confident that Modern Pharma Co., Ltd.’s business performance will continue its good operating results as the seller will continue to work closely with the Company to ensure Modern Pharma Co., Ltd. is maintaining good business performance in 2021. Meanwhile, the Company will bring strength and expertise in sales in other business segments to complement each other. 

 

Moreover, IP will use the factory to produce medicines and transfer nutraceutical production abroad to this factory which aligns with its products strategic plan. By way of doing this, it will help reduce the production costs for the Company as well as enhance competitiveness and future profitability. Such acquisitions benefit the Company and even more for the Company’s shareholders. 

 

With latest financial statement dated October 31st, 2020 of Modern Pharma Co., Ltd., it has shown sales revenue of 177.71 million Baht with net profit equal to 23.895 million Baht or equivalent to 13.44% net profit.