Alvogen took over Labormed at the beginning of 2013, from private equity firm Advent, for $33 million (EUR24 million), less than 20% of the acquisition price paid back in 2008.
In February 2008, Labormed was taken over by Advent for EUR123 million from a group of Romanian doctors and pharmacists who set up the company in 1991 an opened a new production unit in in Bucharest in May 2007.
According to Finance Ministry data, Labormed Pharma reported a turnover of RON88 million in 2012, down 24% on the year, and loss of RON113, down 41% on the year.
After acquiring the Romanian medicine drug producer, Alvogen said Labormed will serve as Alvogen’s head office in Central and Eastern Europe and Labormed facilities will be the manufacturing, R&D, sales and marketing base for the entire region.
Labormed’s product portfolio includes cardiovascular and central nervous system medicines, as well as on OTC analgesics, vitamins, probiotics and cough & cold. Its portfolio complements Alvogen’s existing portfolio, which mainly focuses on oncology and hospital products. In 2013, Labormed gave up the 12 brands bought from PlantExtrakt, which were re-included to the portfolio of the homeopathic medicines maker.
According to market research company Cegedim, Labormed Alvogen was the 18th largest Romanian drug producer in 2013, with sales of RON231.3 million and a market share of 1.8%.
Alvogen entered the Romanian market in 2010 and operates in over 25 countries, including Russia, Bulgaria, Hungary, Serbia, China, Thailand, Taiwan and North America.
According to Finance Ministry data, Alvogen Romania reported sales of RON40.8 million in 2013, down 10.2% on the year, and loss of RON610,000, down 76% on the year.