February 8 (SeeNews) - Croatian drug maker Jadran Galenski Laboratorij (JGL) said on Wednesday it has sold its Russian product portfolio of the brand D-Panthenol and women's health products to Hungarian company Egis Pharmaceuticals.
The transaction provides for the continuation of manufacturing of all products from the contract in JGL's Rijeka production facility, the company said in a filing to the Zagreb bourse.
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The decision to sell the Russian portfolio of D-Panthenol, Vagilac, Feminal and Folacin represents a step forward in the implementation of JGL's strategy and its strong orientation towards key therapeutic areas, the company noted.
"We continue to focus on and strengthen the strategic segments in which we have already proven our competitiveness on the global market. Our export orientation, which is founded on a stable position on the most important export markets, in particular the Russian market, is still the cornerstone of long-term plans for growth and development", JGL board chairman, Ivo Usmiani, said in the filing.
"Despite the difficult market conditions that affect all producers, we continue to achieve good sales results in Russia, and our brands Aqua Maris and Dramina hold the leading positions in the nasal saline segment and the area of antiemetics, respectively", Usmiani added.
JGT will use a part of the proceeds from the sale of the Russian product portfolio to cut short-term and long-term debt, while the remainder will be invested in the development of value-added products and their marketing promotion.
"We do not exclude the possibility of investing part of the revenue in targeted acquisitions. Therefore, we continuously monitor and evaluate opportunities in strategic areas, in selected markets," Usmiani said.
Rijeka-headquartered JGL is specialized in the development and production of value-added sterile products in ophthalmology and otorhinolaryngology. The portfolio of the company consists of 160 brands, 460 products, 1,360 variations and 6,000 articles.
Today, JGL ranks 38th on a list of 2,000 companies on the Russian OTC market.