Hungarian drug firm Gedeon Richter to take over Polfa

Hungarian pharmaceutical company Gedeon Richter is to take over 51% of shares in a partnership created on the basis of assets belonging to Grodzisk Mazowiecki-based Polfa. The government will control the remaining shares. The value of the transaction has not been disclosed but last year the Hungarian company was willing to pay $200 million for the same stake in the plant. The State Treasury agreed to the terms of the transaction on July 31. Grodzisk Polfa is one of the last state-owned drug producers in Poland and has recently spent $30 million on investments. Two thirds of this sum was spent on building a modern extension to the plant. Polfa has also spent $6-7 million on environmental protection and $2 million on quality control and laboratories. The company has recorded zl. 7.6 million in net profits on revenues of zl. 144 million. American Ivax and Italian Recordati Industria Chimica e Farmaceutica were also previously interested in the plant's privatization. (Rzeczpospolita, August 3-4, p.B2) M.M.