July 14 (SeeNews) - Bulgarian pharmaceuticals manufacturer Sopharma [BUL:SFA] said on Friday that, after gaining approval from the board of directors, it signed a contract for the acquisition of Serbian peer Pharmanova within two years.
Sopharma will initially acquire an interest of 25% in Pharmanova, then purchase another 50% ownership in a year's time, with the remaining 25% to be bought within two years, the Bulgarian company said in a bourse filing.
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The transaction is subject to approval by the Serbian competition authority, Sopharma said without disclosing the value of the deal.
Belgrade-headquartered Pharmanova generated net sales revenue of over 10.2 million euro ($11.5 million) in 2022. Founded in 1991, the company manufactures generic and over-the-counter drugs, dietary supplements, ointments and medical devices. It serves the markets of Serbia, Bosnia and Herzegovina, Montenegro and North Macedonia.
The agreement resulted from detailed due diligence by Sopharma and negotiations between the parties.
Sopharma's consolidated net profit declined to 72.6 million levs ($41.7 million/37.1 million euro) in 2022 from 89.5 million levs a year earlier, due to impairment charges. The drug maker held about 2.5% of the Bulgarian pharmaceuticals market in terms of value as of end-2022. In the first five months of 2023, Sopharma's sales revenue grew by an annual 15% due to a rise in exports.
Shares in Sopharma closed 0.38% lower at 5.24 levs on the Bulgarian Stock Exchange on Friday.
($ = 0.8899 euro)