News

Who are the companies interested in Galenika?

Tuesday, 23. Avg 2016.

The commission for carrying out the strategic partnership procedure for Galenika approved on Friday, August 19, all three bids. The submission of the shortlist proposal to the Government of Serbia is to follow. All three interested companies have met the conditions, following two instances of amending the documentation. The competing companies are still India-s Cadila Pharmaceuticals Limited, Brazil-s EMS S.A. and the Consortium of Frontier Pharma Limited from Great Britain and LLC NPA Petrovax Pharm from Russia.

According to Danas, the amount offered at the tender for a fourth of Galenika is not lower than EUR 7 million, and all three companies are rather large on a national level, but can-t be called leaders in this area in the global market.

The first of the potential buyers is India-s Cadila Pharmaceuticals Limited, headquartered in Ahmedabad. The company was founded in 1951, and it currently produces and sells pharmaceutical drugs in 85 countries. They focus, as the company-s website emphasizes, on innovations and research in various areas, and they specialize in research in 12 sectors, among which are treatment of cardiovascular diseases, antibiotics, antidiabetics, analgesics and immunology. Three hundred scientists work on new achievements in these areas.

EMS S.A. is the largest pharmaceutical company in Brazil. It currently employs 4,500 workers and has two factories, both in the state of Sao Paulo. EMS cooperates with numerous well-known companies in this industry and is present in 30 countries. It has existed for 66 years, and, according to 2012 data, it had an income of around USD 2.8 billion.

The third interested bidder is the Consortium of Frontier Pharma Limited from Great Britain and LLC NPA Petrovax Pharm from Russia. The British company has existed since April 2016 and information about it is scarce. What-s known is that the company is headquartered in London and that the director is Kiren Naidoo, a 31-years-old Briton.

On the other hand, their Russian partner celebrates its 20th birthday this year and is the leader, as their website claims, in the Russian pharmaceutical industry, especially when it comes to innovative solutions. Their best known products are grippol and polyoxidonium. Two years ago, for the vaccinations needs on a national level, they made 13.5 million vaccines of grippol plus.

Three years ago, this company became a member of Interros Group, one of the largest investment companies in Russia (metal, infrastructure, real estate, tourism). Interros was also the main funding body of the most expensive Olympics in history, the Sochi 2014 Winter Olympics. The value of the Russian company-s property has been estimated at around USD 15 billion.

As Blic reports, the managers of the Indian company and the British-Russian consortium have very precisely defined the expenses to be incurred in case they enter Galenika. Allegedly, these potential buyers of the Zemun factory state in their bids how many employees they wish to keep, and how many the state should take care of.

A Blic source reveals that, at first sight, both companies offer similar conditions, but that there are nevertheless significant differences regarding the workers. The British-Russian fund, for example, sees Galenika with 700 workers and sets no conditions. The Indian company agrees to 50 employees more, but sets as many as 11 conditions, which are hardly acceptable to the management and the employees.

Both companies offer around EUR 7 million for 25% of Galenika-s capital, which is at the same time the minimum amount required by the state as the majority owner of the factory. The British-Russian fund also offers investments of EUR 30 to 40 million.

– They wish to stabilize the company initially by reducing the number of employees, but the offer states that, through investing in expanding the production, new technology and environmental protection, they could employ new people and raise salaries. They are ready to meet all their payment obligations immediately after the agreement on strategic partnership with Galenika is signed, including EUR 70 million of the company-s debts towards commercial banks. The Indians, on the other hand, ask for the state to help them solve this problem – says the Blic interviewee.

Both potential buyers are counting on the state-s writing off of EUR 130 of Galenika-s debts towards state-owned companies, and they-re also taking it for granted that the state will solve the problem of a surplus of around 700 workers through a social program.

Brazilians out?

According to unofficial information, Brazil-s EMS, whose technical offer has been accepted, might be disqualified due to irregularities in the financial part. The Blic source says that the report of the privatization adviser is being waited for.


Source: ekapija

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