Drugs producer Polfa-Grodzisk to be placed on block

Local government officials said yesterday that a public tender for Polfa Grodzisk (PG) would be called within the next two months, making it the first of the state's pharmaceutical companies to be placed on the block for privatization this year. Some 50% of the company's shares are to be offered to a strategic investor, who must also pledge to sink between $30 million and $50 million into PG. The company's director, Marek Januchowski, estimates that its plant needs $15 million to $20 million within two years' time to keep its products competitive. According to him, without an outsider's financial help, PG can only afford to invest $10 million-$11 million. The company's short-term debts currently amount to about zl.20 million. Industry observers say that several big-name international companies are currently interested in taking part in the firm's privatization, including the German pharmaceutical players Merck, Ratiopharm and Schwarzpharma; the French-German Aventis; and U.S.-based Ivax. (Prawo i Gospodarka, p.4) A.D.