The company will ask shareholders to approve an investment of RON14 million for the acquisition, with the deal set to “augment the company’s profitability and value,” reads a document proposed to the general meeting of shareholders convened for April 23.
The document does not provide additional information, but Biofarm management underscores the acquisition will have to secure an increased market share and the development of the product portfolio, so that the company’s strategy probably envisages the absorption of another producer.
If the deal goes through, it would be among the few acquisitions carried out by a Romanian-held drug maker, a business controlled by investment funds SIF Muntenia, SIF Banat-Crisana and SIF Moldova.
With sales of RON128.9 million in 2014, Biofarm would hold 1.2% of the market, according to ZF calculations.
For 2015, the company plans to generate sales revenue of RON142.9 million, slightly higher than in 2014. The drug maker has budgeted RON38.8 million investments for 2015. Biofarm will resume dividend payment in 2015, after a break of one year, and it’s set to disburse RON14.7 million as dividends.
(English version by Catalina Apostoiu)