Richter buys Polfa Grodzisk, now looks to export markets

Hungary's flagship drug producer Richter Gedeon signed a long-delayed deal on Thursday to take over pharmaceutical producer Polfa Grodzisk and so gained a foothold in the Polish market. Under the agreement signed with Warsaw district authorities, Richter would buy new Polfa shares for zl. 125 million, zl. 70 million of which is earmarked to develop Polfa's five-year investment program. Following the capital increase, Richter will have a 51% stake in Polfa, with the rest of the shares remaining in the hands of the State Treasury. Richter Gedeon, which is Central Europe's second largest drug firm after Croatia's Pliva, also agreed to guarantee the jobs of the 1,070 staff for 42 months. "The key issue for us is to grow in Central and Eastern Europe and Poland is the most important market in the region. That is why it is important to have a partner here," Richter chief executive Erik Bogsch told a news conference. Bogsch said Polfa's product portfolio would complement that of Richter, which focuses on gynecology, cardiovascular and central nervous system pharmaceuticals. "Our aim is to transform Polfa into a company producing mainly for export, using our trade and distribution network," Richter said in a statement. Polfa, posted a net profit of zl. 7.6 million last year on sales reaching zl. 144.4 million. (Reuters)