Pharmag plan will see money owed by hospitals exchanged for bonds

Gdansk-based pharmaceuticals distributor Pharmag plans to exchange money owed to it by hospitals for bonds. In this way the company hopes to improve its financial liquidity, jeopardized by its main customers, which are insolvent hospitals. Pharmag will transfer the hospitals' liabilities to its affiliate, Pharmag HM, which in turn will issue bonds valued at zl.100 million. The entire operation will be secured by BRE Bank. This year Pharmag plans to generate income of zl.160 million from drugs sales to hospitals, out of overall turnover of zl.800 million. Pharmag is one of Poland's biggest pharmaceuticals distributors, with turnover last year in excess of zl.580 million. (Puls Biznesu, p. 9) M.T.