Richter Gedeon Nyrt and its Romanian subsidiary Armedica have acquired 94% stake in Bioplus Pharm, a Romanian pharmaceutical retailer that operates drugstores in Bucharest, Ziarul Financiar reported on Monday. According to the report, Richter agreed on 23 October 2006 to pay EUR 0.6m for the stake in Bioplus.
Our view: We see the news as positive, although we do not expect major share price reaction due to the small scale of the transaction. Our positive stance stems from the strategic fit of the retail drug chain into Richter’s business. We see this distribution channel as a good way to market Richer’s oral contraceptive drugs in the Romanian capital, where the reproductive age females are most likely to apply birth control in the country.