#Italy #AKANTIOR #SIFI #Catania #Faes Farma

SIFI Merges with Faes Farma: A New Era in Ophthalmic Care

In a significant move within the ophthalmic industry, SIFI, a leading international ophthalmic company, has entered into a merger agreement with Faes Farma, a major European pharmaceutical player. The agreement, subject to customary closing conditions, marks SIFI's strategic decision to sell 100% of its shares to Faes Farma, further solidifying its unique business model that integrates both pharmaceutical and surgical units. This merger aims to expand the international access to SIFI’s extensive portfolio and ongoing projects, especially in the high-growth segment of the ophthalmic market.

What This Merger Means

The merger will leverage Faes Farma's established presence in complementary markets, especially after their recent acquisition of Laboratorios Edol. This collaboration is expected to create strong commercial synergies that will enhance the growth trajectories of both companies. In particular, SIFI's infrastructure, including its state-of-the-art facilities in Aci S. Antonio, will be significantly bolstered, allowing for greater efficiency in production and distribution.

One of the key areas of development post-merger will be Akantior, SIFI's innovative product aimed at treating Acanthamoeba keratitis. This treatment is pivotal as it is the first and only therapy globally approved for this rare and serious corneal infection affecting roughly 3,000 patients annually across Europe and the U.S. Akantior has already gained approval from both the European Medicines Agency (EMA) and the UK's MHRA, with plans for further development in the U.S. market.

Expansion and Innovation

The merger will allow Faes Farma to offer one of the most comprehensive ophthalmic product lines in the industry, expanding its footprint into new and dynamic markets such as Italy, France, Romania, and Turkey, while also strengthening its existing presence in Iberia, Mexico, and Latin America. This expansion is vital, as it positions the combined entity to capitalize on cross-selling opportunities, enhancing overall growth and profit margins through operational efficiencies.

Furthermore, the integration of SIFI's and Laboratorios Edol's offerings is expected to foster innovation in treatment solutions, aligning with the needs of both healthcare professionals and patients.

Commitment to Quality and Growth

Fabrizio Chines, CEO of SIFI, expressed enthusiasm for the merger, stating that joining forces with Faes Farma complements their core values and cultural synergy. This partnership is anticipated to be a cornerstone for the ambitious strategy aimed at making ophthalmology a key therapeutic area for the now combined group, projecting to represent approximately 20% of its pro forma revenues.

Eduardo Recoder de la Cuadra, CEO of Faes Farma, highlighted the robustness of SIFI’s business model and the expertise of its management team. The strategic collaboration will enhance Faes Farma's capabilities in the ophthalmic sector, accelerating its international expansion while also addressing the needs for a broader range of innovative solutions within the field.

Financial Overview and Future Outlook

The transaction values SIFI at an initial enterprise value equivalent to a double-digit multiple of its 2024 EBITDA, alongside potential earnings from regulatory and commercial milestones tied to Akantior. The transaction is expected to finalize in the third quarter of 2025, pending standard competition authority approvals and an extraordinary shareholders' meeting scheduled for July 2025.

Both SIFI and Faes Farma are committed to ensuring a seamless integration process, with ongoing investments in research and development particularly focused on expanding the reach of Akantior and exploring new therapeutic applications for its formulations, including upcoming clinical trials for fungal keratitis treatment. This merger is expected to set a precedent in the ophthalmology sector, ultimately leading to enhanced patient care and treatment options on a global scale.

Overall, the union of SIFI and Faes Farma is a notable development that not only signifies growth for the companies involved but also promises enhanced treatment capabilities for ophthalmic conditions, benefiting patients worldwide. This merger underscores the importance of innovation and strategic alignment in driving advancements within the healthcare industry.