The lock-up period for Warburg Pincus in Zentiva ends today which means that Warburg Pincus can offer its stake in Zentiva as of Monday. Warburg Pincus sold on 19 and 20 September 4.5m and 6.2m shares in Zentiva respectively and decreased its stake in the company to 19.6% from the previous 48%. Selling these shares was connected with lock-up period of 120 days during which Warburg Pincus was not allowed to sell remaining shares in Zentiva. Because of gradual decrease of Warburg Pincus’s stake in Zentiva we expect further reduction after the end of lock up period. The current stake of 19.6% that Warburg Pincus holds in Zentiva represents 7.5m shares. We believe that potential investors’ interest in bigger stake in Zentiva is substantial which eliminate the risk of excessive supply and we do not expect that Zentiva’s shares will get under selling pressure. On the contrary, we expect the stake to be subscribed fast and the risk of another potential major selling in the company will fade away which will support growth of the share. As a consequence we reiterate our Buy recommendation with fair value of CZK 1,334.