MILAN, 18 May (APM) - CVC Capital Partners has decided to put its €8 billion acquisition of Recordati on hold because of the political situation in Italy, La Stampa reported on Thursday.
Citing a report on Reuters, the paper said the price represented a 25% premium on the Milan-based company’s current stock market price. It said that the private equity firm started negotiations for a possible acquisition of Recordati at the end of last year.
The talks were reported to have been halted around the time of the elections in March which failed to produce a majority and left anti-establishment groups among the largest parties in parliament.
The reason for putting the deal on hold was that there was no longer any desire to take “big bets in Italy". An anonymous source was quoted as saying that it would have been difficult to justify such a high price to investors at a time of so much political uncertainty.
Recordati’s share price jumped 6.81% after the reports of CVC's interest in buying the pharma materialised, Il Sole 24 Ore reported on Thursday.
Milan damaged by opaqueness of EMA relocation process - mayor
Milan was damaged by the opaque nature of the process to choose a new home for the European Medicines Agency (EMA) after the UK leaves the EU, the city’s mayor told a hearing in Brussels, La Repubblica reported on Thursday.
Beppe Sala addressed the European Parliament committee on petitions. He insisted that there should now be strict monitoring of the progress of the agency’s relocation to Amsterdam to ensure that it is carried out within the timeframe and projected costs of the Dutch city’s candidacy.
He insisted that the EU should keep its options open if Amsterdam fails to live up to its promises. He reiterated that Milan’s position remains the same as a year ago: that it is willing and able to host the EMA within the time specified and ensure operational continuity.
The paper said Sala made clear that he does not feel Milan’s bid was assessed objectively and complained that Amsterdam was allowed to change the location for the EMA after it was chosen to host the agency. He added that he had been deeply disappointed by explanations given by an official said to be speaking behalf of commission cabinet member Henning Klaus.
Italian pharma must invest in Industry 4.0 to overtake Germany
Italian pharma will have to invest in Industry 4.0 if it is serious about overtaking Germany as the biggest pharma producer in Europe, La Repubblica reported on Monday.
The advice came from Sergio Dompé, chairman of the eponymous Italian group, during a science meeting in Bologna. “It only needs another 2-3% increase (in pharma production) for it to happen, but there needs to be investment in the latest information technology so it can be integrated into the right business models. Unfortunately I do not see the necessary investment happening in Italy at the moment,” he told the paper.
Italian pharma manufacturing is worth €31 billion in sales, and around €40 billion if ancillary industries such as machinery and packaging are included.
Dompé also highlighted how the industry’s R&D is changing. He said Big Data and genomic analysis are creating huge quantities of information which can be used to develop personalised medicines, the paper reported.
IBSA appoints new CEO in Italy
IBSA has appointed Luca Crippa as its new chief executive in Italy, About Pharma reported on Monday.
Previously he worked for Bayer as global head of the cardio aspirin unit and country manager of Croatia and Serbia, the paper said. The Lugano-based group also appointed a new commercial director in Italy, Giuseppe Celiberti, who previously worked at GlaxoSmithKline and Chiesi.
Italy planning to triple therapeutic cannabis production
Italy is planning to significantly boost production of therapeutic cannabis to meet demand, Adnkronos reported on Tuesday.
The news agency interviewed Antonio Medica, head of the military pharmaceutical facility in Florence where Italy’s homegrown crop is processed for delivery to pharmacies.
The current production capacity is 100 kg. The aim is to increase it to 300 kg and to use a new variety of plant which has a higher THC content, the paper said.
At the moment Italy does not produce enough of its own therapeutic cannabis to meet demand. It has already signed a contract for 100 kg to be imported from Holland to cover the shortfall in 2018. Another tender will he held to procure a similar amount for 2019. After that, it is hoped increased production in Florence will allow Italy to become self-sufficient.