One of them is US company Alvogen, present on the Romanian market since a few years ago, with drug industry sources say it is in talks to buy Labormed. The value of the transaction could amount to around EUR25-30 million and cover part of the company’s debts.
Contacted by ZF, Adrian Stroilescu, CEO of Labormed since August 1, did not wish to comment on information regarding a prospective sale of the company. Alvogen representatives could not be contacted by deadline.
“If it goes through, the sale of Labormed would be the only deal this year in the drug industry, a sector that has become very challenging in the past few years, but used to be a magnet for multinationals in the sector during the boom years.
Alvogen is a US company currently developing its operations in Central and Eastern Europe. The company is led by Robert Wessman, the Icelander who also ran the Actavis group.
History of Labormed: from local entrepreneurs to investment fund
Labormed, a producer with one facility in Bucharest, has been through a troubled time this year, after CEO Stephen Stead stepped down in August. Later, there was information in the drug industry according to which Advent International, the investment fund that owns the company, may have wanted to exit the company by handing over its stake to individuals – company managers. There is no information on whether this intention was fulfilled or not.
On Advent’s website, Labormed continues to feature as an ongoing investment. Advent representatives could not be contacted by deadline. Advent’s exit from Labormed would not be a surprise because Tamas Nagy, managing director of Advent Central and Eastern Europe said in June that the fund was willing to sell any stake it had in Romania “because this was in fact the purpose of the business”. Advent has businesses in the medical sector (Regina Maria and Labormed) and in the construction materials sector in Romania.
The investment fund took over Labormed in 2008 after competition from 13 other interested investors.
The transaction was considered a record-high one at the time, with Advent having to pay EUR123 million for the drug manufacturer.
According to data from last summer, Labormed’s debts amounted to over EUR60 million.
Labormed ranks 15th among the largest companies in the drug industry, with a 2% market share and sales of 231.3 million lei (around EUR50 million) recorded between October 2011 and September 2012, according to data from market research company Cegedim.
The drug market amounted to EUR2.6 billion between October 2011 and September 2012, up 9.7% year-on-year.
(English version by Daniela Stoican)