Zentiva’s CEO, Jiri Michal, said at a press conference in Bucharest that the company wants to increase its majority stake in Romanian Zentiva (former Sicomed) to 100% therefore, it will hold new talks with minority shareholders. Currently Zentiva holds 75% stake in Romania’s subsidiary while London based QVT Fund holding at least 10% stake demand higher buy-out price then previously offered by Zentiva (RON1.37 per share). Michal also added that Sicomed’s production will be kept while adding Zentiva’s portfolio on the top of that. Zentiva is also monitoring potential expansion opportunities. Note that the state’s 53% stake in the 2nd largest pharma company in terms of market share Antibiotice is for sale. We do not expect the news to have any particular significance for today’s trading as the market awaits announcement of Zentiva’s FY2005 figures and consequent conference call on February 27. In the meantime we reiterate our Buy recommendation.