Are you sure?

Richter to create pharma giant through purchases Polpharma

Hungarian drug maker Gedeon Richter Nyrt said it will combine with Polpharma in a deal that values the Polish company at $1.3 billion while acquiring a majority stake in Russian Akrihin in an equity deal worth $128 million.

The deal with Polpharma will create the largest pharmaceutical player in the region, with a market capitalization of $5.4 billion, Richter said. Erik Bogsch, Managing Director of Gedeon Richter, said: “Gedeon Richter’s existing product portfolio and that of Polpharma are highly complementary. This transaction will strengthen our position in the region, especially in Poland, and generate enhanced growth opportunities for Gedeon Richter.”

The deal will be funded through a new share issue amounting to 25% of Richter, which will be transferred to Genefar BV, the owners of Poland’s second largest drug company. According to Bloomberg at the same time Hungary’s largest drug maker will buy an 80.62% stake in Russia’s OAO Akrihin in exchange for 593,684 new Richter shares. The stake will also be purchased from Genefar. On completion of all the transactions, Genefar will own 26.75% of the enlarged Richter. “The acquisition of Akrihin will further enhance Richter’s operations and strong market position in Russia,” said Richter. Sales of Akrihin were approximately $63 million in 2006, Richter said. (Budapest Stock Exchange/ BÉT)