PRAGUE and LONDON, March 1 /PRNewswire-FirstCall/ --
- Market Entry Represents Further Step Towards Corporate Goal of Becoming the Leading Pharmaceutical Company in Central and Eastern Europe
Zentiva N.V. announces today that it has entered the Hungarian pharmaceutical market via the acquisition of certain generic products, personnel and other operating assets from sanofi-aventis. The move into the Hungarian market is in line with Zentiva’s strategy of extending its geographic reach in the region, as it moves towards its target of becoming the leading pharmaceutical company in Central and Eastern Europe (CEE). Financial terms of the deal were not disclosed.
As the starting point for the expansion of its Hungarian operations, Zentiva’s Hungarian subsidiary has acquired a total of 23 products, which had sales of approximately EUR11 million in 2006. In addition, Zentiva and sanofi-aventis have agreed that some supporting functions will be transferred alongside these products. Zentiva expects to grow its presence in Hungary as the company introduces more of its own successful high quality branded generic products targeting primary care.
The acquired business provides Zentiva with access to the Hungarian market, which is an attractive growth opportunity. This acquisition will allow the Company to continue its growth in the CEE by executing its primary care focused strategy.
Mr Jiri Michal, Chairman and CEO of Zentiva commenting on today’s announcement said, “Zentiva believes that it can play an important role in the primary care market in Hungary. As in the other markets of the CEE, we strive to provide more patients with access to modern medicines at the appropriate cost. The products and supporting structures acquired from sanofi-aventis provide us with the right platform to build a successful operation in this important regional market. Over the next twelve months we plan to introduce a number of our high quality branded generic products that have been highly successful in many of the region’s other markets. Our entry into Hungary represents a further step towards our goal of becoming the leading pharmaceutical company in Central and Eastern Europe.”
The Hungarian Pharmaceutical Market
Hungary has been a member of the EU since 2004. It is a significant central European market for pharmaceuticals, despite its modest population of around 10.1 million people. This is due to pharmaceutical expenditure per capita being one of the highest in the region. In 2006 the Hungarian retail market was valued at $2 billion or EUR1.7 billion and in recent years the market has been growing at about 10% per annum. This growth is expected to slow in 2007 due to the introduction of new cost containment measures. Generics account for approximately 25% of the overall pharmaceutical market in terms of value.
Zentiva N.V. is an international pharmaceutical company focused on developing, manufacturing and marketing of modern branded generic pharmaceutical products. The Company has leading positions in the Czech Republic, Slovakia and Romania and is growing rapidly in Poland, Russia, Bulgaria, Ukraine and the Baltic States. Zentiva’s strategy is to grow further by increasing patient access to modern medicines through primary care providers within the EU and Eastern Europe. The growth will be based on further organic development of its existing business and through selective acquisitions, while maintaining profitable growth.
The Company addresses a wide range of therapeutic areas but has particular focus on cardiovascular disorders, inflammatory conditions, pain, infections and diseases of the central nervous system and the gastrointestinal and urology fields.
The Zentiva Group employs over 4,500 people and has production sites in the Czech Republic, Slovakia, and Romania.
Zentiva is listed on the Prague and London Stock Exchanges. The Company’s largest shareholders are Sanofi-Aventis (24.9%) and Ceska pojistovna and related parties (12.3%). Zentiva’s management holds 6.4% of the company shares. Other institutional and private investors hold a combined 56.4% of company shares.
Company Contacts: Petr Sulc Chief Financial Officer Tel: +420-267-242-737 petr.sulc@zentiva.cz Alexander Marcek Corporate Finance Director Tel: +420-267-243-745 alexander.marcek@zentiva.cz Libena Stiebitzova Investor Relations Tel: +420-267-243-055 Tel: +420-267-243-888 Fax: +420-272-702-869 libena.stiebitzova@zentiva.czInvestor.relations@zentiva.cz Vera Kudynova PR Manager Tel: +420-267-242-312 vera.kudynova@zentiva.cz Media Contacts: Citigate Dewe Rogerson Tel: +44-(0)20-7638-9571 David Dible david.dible@citigatedr.co.uk Chris Gardner chris.gardner@citigatedr.co.uk
Zentiva NV
CONTACT: Company Contacts: Petr Sulc, Chief Financial Officer, Tel:+420-267-242-737, petr.sulc@zentiva.cz; Alexander Marcek, Corporate FinanceDirector, Tel: +420-267-243-745, alexander.marcek@zentiva.cz; LibenaStiebitzova, Investor Relations, Tel: +420-267-243-055, Tel:+420-267-243-888, Fax: +420-272-702-869; libena.stiebitzova@zentiva.cz;Investor.relations@zentiva.cz Vera Kudynova, PR Manager, Tel:+420-267-242-312, vera.kudynova@zentiva.cz; Media Contacts: Citigate DeweRogerson, Tel: +44-(0)20-7638-9571, David Dible,david.dible@citigatedr.co.uk, Chris Gardner, chris.gardner@citigatedr.co.uk
