May 19 (SeeNews) - Romanian state-controlled drug maker Antibiotice [BSE:ATB] said that it was granted 85 million lei ($18.5 million/17.1 million euro) in state aid to finance a project that will enhance its production, research, packaging and storage capacity for sterile products, solutions and topicals.
The total value of the project amounts to 200.1 million lei, with the difference being covered through the company’s own resources, Antibiotice said in a press release on Wednesday.
The expansion of the company’s production and logistics capacity will ensure the manufacturing of new generic drugs by addressing new pharmaceutical forms. Antibiotice is drawing on its expertise in the field of manufacturing sterile injectable powders by addressing a new segment of medicines intended for hospitals, namely sterile solutions dosed in glass vials, as well as sterile topicals for dermatological and ophthalmic conditions.
Producing the new drugs will support the national health system and increase exports, while boosting turnover through the 2030s.
By implementing this investment, Antibiotice will consolidate 1,350 existing jobs, while also creating new positions, especially in research and development (R&D). The investment is part of the 85 projects prioritised in Romania’s strategy for regional research and innovation through smart specialisation that is aimed at the northeastern region.
In December, the company said it invested 20 million euro ($21.6 million) of its own funds in a new plant for topical drugs in the northeastern city of Iasi.
In 2022, Antibiotice booked a net profit of 38.5 million lei, up 29% on the year, it said in an audited financial report published on its website in March.
Antibiotice is owned by the Romanian state through the health ministry with a 53% stake, retail investment fund SIF Oltenia with 27% and small shareholders.
The company’s shares traded 2.35% higher at 0.61 lei as at 1006 CET on the Bucharest bourse on Friday.
(1 euro=4.9731 lei)