Treasury Ministry to consolidate state-owned drug firms

The Treasury Ministry is planning to create a pharmaceutical holding company composed of state-owned drug companies. Three state-owned firms, Polfa Warszawa, Polfa Pabianice and Polfa Tarchomin will be included in the holding, but it is unknown how many other companies will become part of it. After consolidation, the holding, which is likely to become the leader on the Polish pharmaceutical market with a turnover of more than zl. 700 million, is to be listed on the Warsaw Stock Exchange (WSE). "The idea to consolidate the pharmaceutical companies, although very late, is a very good one," says DM BZ WBK analyst Grzegorz Litwinski. "Polish drug producers have been losing market share for several years and they are so small in comparison to their foreign competition that they are unable to compete even on the domestic market. Thanks to the consolidation the position of the new holding will certainly strengthen." According to unofficial information, the new holding is planned to be created around Polfa Tarchomin despite the fact that the company has debts and large capital needs following several unsuccessful investments. Polfa Tarchomin has the largest market share of the three drug producers. Despite the consolidation the new holding would be at the end of the list of huge pharmaceutical firms from Eastern and Central Europe such as Slovenia-based Lek or Hungarian concern Gedeon Richter. (Rzeczpospolita, p. B1) A.Z.