Pliva expands into German oncology market
Zagreb – Barr-PLIVA d.d.’s German subsidiary AWD.pharma GmbH & Co. KG. has signed an agreement to acquire O.R.C.A.pharm GmbH (“ORCApharm“), a privately owned specialty pharmaceutical company focused on the oncology market in Germany. Upon closing of the transaction, AWD will pay a fixed purchase price of €21million and up to an additional €13million based on the fulfillment of milestones for 2007 and 2008.
“Our acquisition of ORCApharm, a well established player in the German oncology market, provides us with a strategic platform for entering the highly lucrative oncology business in Germany and strongly supports our corporate strategy of focusing on markets with greater barriers-toentry and thus greater value,” commented Željko Covic, President of Pliva’s Management Board and COO. The acquisition of ORCApharm and its current product portfolio supports Pliva’s commitment to the European oncology market, said Covic. ”It strengthens the foothold we have already established through our Czech subsidiary Pliva Lachema, which focuses on the development, production and distribution of vertically integrated injectable cytostatic products. Furthermore, we are confident that we will deliver additional product synergies by expanding ORCA’s portfolio to include select Pliva and Barr products that complement oncology treatments, such as our pain and CNS franchises.” Pliva, the European subsidiary of Barr Pharmaceuticals, also is developing generic versions of biological drugs such as Neupogen. It develops a GCSF biosimilar for treatment of neutropenia after cancer chemotherapy.
In the first six months of this year, Pliva achieved revenues of €560 million, which was lifted by a one-off payment of €109 million for its subsidiary in the US, which it sold to Barr in April. Pliva‘s pre-tax income quadrupled to €177 million and net profit tripled to €150 billion.