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Labormed sale takes drug market deals to over 650m euros

Labormed sale takes drug market deals to over 650m euros

In 2007, LaborMed also opened a new production facility in the wake of investments worth 13m euros

08.02.2008, 19:21 17

LaborMed Pharma, the drug manufacturer, owned by five Romanian entrepreneurs, has been acquired by Advent investment fund in a deal estimated to be worth approximately 120 million euros, according to market sources.
After the LaborMed deal, the list of Romanian producers available for sale is almost empty, given that Antibiotice Iasi is also up for privatisation this year with a starting price of 136 million euros for 53% of its shares. Over the past few years, former major domestic producers such as Terapia, Sindan Bucharest and Sicomed have all been sold to global giants.
In the wake of the LaborMed and Antibiotice deals, whose cumulated value may go beyond 300 million euros, the pharmaceutical market is witnessing its second significant year in terms of deals.
ZIARUL FINANCIAR wrote as early as the end of last year that Advent was the favourite to take over LaborMed, after GED Capital, Teva Pharmaceutical (the world's biggest producer of generics) Ratiopharm and Dr. Reddy's had also shown an interest.
This is not Advent's first contact with the pharmaceutical industry; until 2006 it held the majority stake in Terapia, which was finally taken over by India's Ranbaxy in a deal worth 324 million dollars. LaborMed's takeover is the second deal Advent has sealed in a year on the Romanian market, after it paid around 35 million euros for 70% in Ceramica Iasi stock last summer. The construction materials and pharmaceutical industries are boasting the strongest growth rates throughout the overall economy. Advent also includes dye and varnish producer d?fa Deutek in its portfolio.
Of all deals with domestic producers, Terapia's acquisition by Ranbaxy ranks first in terms of value, followed by the sale in 2006 of domestic drug manufacturers Sindan Bucharest to Icelandic giant Actavis for 147.5 million euros.
LaborMed is currently the only large Romanian drug producer owned by domestic entrepreneurs. Last year, the company estimated turnover worth 35m euros. At the same time, LaborMed in the third quarter of last year ranked sixth among domestic drug producers, with a market share of 1.6%. In 2007, the producer also opened a new production unit in the wake of investments worth 13m euros.

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