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Richter borrows to cover part of cost of Grünenthal portfolio acquisition

Hungarian drug maker Richter borrowed to pay part of the €236.5 million purchase price of the oral contraceptive portfolio of German peer Grünenthal, CEO Erik Bogsch said on Wednesday.

The cost of acquiring the Grünenthal portfolio together with buying Swiss peer PregLem a month earlier would have brought Richter's stock of cash close to nil, thus the decision was made to cover some of the purchase price of the latest transaction with a loan, Bogsch said.

Richter announced the acquisition of the Grunenthal portfolio in the morning.

“Grünenthal's existing oral contraceptive business represents a strategic fit for Richter to both strengthen its presence in Western European markets and expand its oral contraceptive product portfolio,” the company said.

Global sales of Grünenthal's oral contraceptive portfolio, with the exception of Latin America, where Grünenthal will retain sales and marketing rights for the products, amounted to €72 million in 2009.

Germany's competition authority is expected to clear the acquisition in December 2010, after which the transaction will be closed. (MTI-Econews)