Slovenia's Lek drops Polfa Tarchomin for Zaklady Farmaceutyczne Argon

Slovene pharmaceuticals company Lek has decided to withdraw from the purchase of 80% of domestic medicine producer Polfa Tarchomin. At the same time, the company has signed a contract for the acquisition of almost 90% of another domestic pharmaceuticals player Lodz-based Zaklady Farmaceutyczne Argon. Though the exact price of the deal is not known, insiders estimate it amounts to several million euros. Lek representatives say the company is considering further acquisitions in Poland's pharmaceuticals segment and sees Polfa Grodzisk Mazowiecki, slated for privatization before the end of this year, as a potential candidate. Analysts say Lek will face stiff competition from U.S.-based Ivax, which has also expressed interest in the deal. Polfa Grodzisk is expecting its future strategic investor to sink between $30 million and $50 million into its operations. According to Prawo i Gospodarka daily, last year Polfa Grodzisk recorded zl.6 million in net profit on revenues of zl.140 million. (Prawo I Gospodarka, 17-18 Feb., p.3) J.K.