Warsaw (Puls Biznesu) – Bioton is buying two Italian firms and eyes the American market. It plans listing on the Nasdaq.
In 4-5 years, the two Italian companies, which are being acquired by Bioton insulin producer, should generate nearly EUR 50m of annual sales and double-digit income. Last year, Pharmatex Italia and Fisiopharma had EUR 15m of sales and EUR 1m of net income.
“We want to make use of their potential and increase the scale of their operations”, Adam Wilczega, Bioton CEO said.
The listed company from Warsaw has so far signed a letter of intent to buy the two firms. The transaction will be concluded after due diligence. The value of the transaction has been initially estimated at EUR 17m in cash and Bioton’s shares.
The Italian investments are to precede U.S. expansion. Thanks to several medicines produced in Italy, Bioton wants to enter the U.S. market. The CEO considers a debut on the Nasdaq.
“But this is in a long-term perspective. First we must reach the 5 percent share in the globar insulin market. Today, the share amounts to 1.2 percent”, Adam Wilczega said.
Bioton is present in Asia and South America. It is going to deliver insulin to Russia in August. The company is negotiating to increase its stake in Ukrainian Indar. A plant in China is going to be constructed. The investment projects worth PLN 275-300m (EUR 69.6-75.9m) will be supported by the issue of new shares.
“This year, the sales should amount to PLN 250-300m. It is getting more and more possible to achieve three-digit gross income”, the CEO said.
In 2005, the sales exceeded PLN 151m and the net income PLN 24m.
(PLN 1 = EUR 0.253)