Zentiva’s EGM has approved the acquisition of the largest Romanian generic drug producer, Sicomed, as expected. Zentiva will acquire a 51% stake in Sicomed for USD 102m. Zentiva intends to launch a buy-out offer for minorities. The total value of the acquisitions would be USD 200m. Based on the acquisition we increased our fair value of Zentiva to CZK 1,334 with a Buy recommendation on September 21.
The EGM approved the appointment of Lars Lamneborn as executive director.
The PM together with Health insures agreed that drug expenditures will not increase in 2006, which could favour Zentiva as it produces cheaper generic drugs. Drug expenditures stood at CZK55 in 2004.