Ljubljana stock indices close in red
Croatia’s share indices snap four-day winning streak
Foreign tourist arrivals to Bosnia up 27% y/y in Oct
Foreign cruise ship journeys to Croatia increase y/y in Jan-Oct
Bulgarian share indices keep ascending, Eurohold paces gainers
Nov 09, 2007 17:02 EEST
(adds analyst comment) </p>LJUBLJANA
November 9 (SeeNews) - Slovenian drug maker Krka said on Friday it had raised its group net profit for the first nine months of 2007 by 23% on the year to 98 million euro ($144 million) and had signed an agreement to buy German drug maker TAD Pharma for 97 million euro, its first ever acquisition.
“Generally speaking, the results are good, in line with expectations,” Andraz Vrh, asset manager with Ilirika brokerage house, told SeeNews. He said that compared with its rivals in the region, Krka had posted the best results.
“Now they have decided to acquire the German company, which is a precedent in their strategy. In this way they can raise their sales in western Europe,” Vrh said, adding that Krka has been focused on the markets of eastern and southeastern Europe so far.
"This is a milestone in Krka’s history. TAD Pharma is the first acquisition ever for Krka, which will supplement our effective organic business development and further enhance our position in the generic pharmaceutical industry in West Europe," Krka CEO Joze Colaric said in a statement.
Krka had signed an agreement with Germany's PHW Group for the acquisition of TAD Pharma. The transaction will be funded using a combination of Krka’s cash on hand, current financial assets and committed credit facilities.
TAD Pharma, part of PHW Group, is among the 15 biggest generic drugs suppliers on the German market. It is focused on drugs for cardiovascular, central nervous system and urogenital diseases. It employs 170. For the business year ending in June 2007, the sales of the company amounted to 59.3 million euro.
PHW Group is a family-owned business group including 35 medium-sized companies.
Krka’s group net sales through September rose to 570.9 million euro from 501.2 million euro a year earlier. Parent net profit rose by 16% on the year to 90.1 million euro in the first nine months of 2007 as sales went up to 497 million euro from 438 million euro a year earlier.
Shares in Krka added 1.1% to an average price of 115.29 euro on the Ljubljana Stock Exchange on Friday. The company released its nine-month results after the close of trading hours.
The Krka group comprises the parent company and 13 subsidiaries in Slovenia and abroad.
($ = 0.68 euro)
You have run out of free articles this month.
Sign up in for
and get ten (10) free articles per month or sign up for
and get unlimited access.
Browse our free newsletter options