Polish pharma Polpharma acquires Polfa Warszawa for PLN 815 mln
Polish pharma Polpharma has just acquired a stake of 85% in its minor competitor, state-owned Polfa Warszawa, for a total of PLN 815 mln.
“The second attempt at privatization ended with a success,” State Secretary in the Ministry of Treasury Jan Bury told the Polish business daily Puls Biznesu. “It was worth waiting for Polfa to post better financial results, thanks to which the price is now twice as high as it was two years ago.”
Jerzy Starak, the owner and manager of Polpharma, had previously attempted to take control of Polfa.
The Treasury is following Poland’s recent policy to privatize state-owned companies in order to patch up budget holes and fend off the consequences of the global financial crisis, still in force in Europe. Another example of a Polish state-owned pharmaceutical on the privatization block is Polfa Tarchomin, although state officials indicate that it will not be just yet put on sale–or at least not before the restructuration process is over.
Asked about its expansion plans, Polpharma’s owner Starak said that the company is not eyeing further acquisition targets in Poland because there are no attractive targets there. Instead, the company wants to focus on other markets.
“We want to reach the position of a leader in Central and Eastern Europe as well as on the Central Asian market,” Jerzy Starak announced.
Polpharma is looking for potential targets in Russia, Ukraine, China and Algeria with yearly revenues revolving around USD 30-50 mln. According to Puls Biznesu, Polpharma is already in talks with targets in Europe, while it is only at the monitoring stage when it comes down to the markets in Asia and Africa.
In China, Polpharma is considering entering the market through entities that have already obtained drug licenses and registrations. For a Polish company to obtain all the necessary licenses required to operate on the Chinese pharmaceutical market, the procedure may take up to two years.