GlobalOne Healthcare Raises Stake in Biopharma Player, Alvotech

Gulf Time

GlobalOne Healthcare Holding (GHH), a Yas Holding division, has announced the expansion of its strategic investment in Iceland-based biopharmaceutical company, Alvotech. Alvotech announced on 7 December 2021 that it had entered into a definitive business combination agreement with a special purpose acquisition company (SPAC), backed by Oaktree Capital Management L.P. The proposed transaction is expected to close in the first half of 2022, after which the combined company’s securities are expected to be traded on NASDAQ under the symbol “ALVO”.

Completed through its dedicated healthcare investment vehicle, GlobalOne Healthcare Holding LLC (GHH), the recent investment in Alvotech is their second round of funding. The investment further demonstrates GHH’s long-term strategic commitment to the success of the biopharmaceutical company, which is expected to bring biologic technology to potentially transform the region’s healthcare industry.

In 2019, Yas Holding acquired a 2.5% stake in Alvotech, signing an exclusive partnership agreement to commercialise its products in the Middle East and North Africa region. The deal was valued at around $45 million.

Murshed Al Redaini, Group Chief Executive Officer of Yas Holding, said: “Three years ago, we recognised the potential for Alvotech, which we expect to be one of the most successful biopharmaceutical manufacturing companies globally. Our investment in the expanding company positions us at the forefront of innovative biopharmaceuticals. We are very pleased with our strategic partnership with Alvotech, which aligns with our vision to continuously improve access to biopharmaceuticals in the UAE, while serving to strengthen our ongoing investments in the healthcare industry.”

Ashraf Radwan, CEO of GlobalOne Healthcare, said: “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. This is part of GHH strategy to invest in global life sciences and disruptive Healthtech, and to facilitate the transfer of these technologies to the region.

Alvotech, which has partnered with pharmaceutical companies in more than 50 countries, is focused on the development and manufacturing of biosimilar medicines. The company’s pipeline contains several monoclonal-antibody and fusion-protein biosimilar technology aimed at treating autoimmunity, oncology and inflammatory conditions. The biosimilars will improve both access and the quality of life for patients worldwide. Alvotech’s vertically integrated platform can support new products each year, which will create a substantial portfolio of high quality, high-value products.

Upon completion of the proposed transaction, the combined company is estimated to be valued at around $2.25 billion. Alvotech is expected to receive total proceeds of $450 million from the transaction (assuming no redemptions), including $150 million from a private placement in public equity backed by Temasek, CVC Capital Partners and funds managed by Suvretta Capital, among others.