Gedeon Richter grants 23.6m-euro funding to local branch

In the wake of acquisitions worth over 30 million euros, which led to a 7% market share, Hungarian pharmaceutical group Gedeon Richter will continue to finance the development of its Romanian branch with a loan worth 23.7 million euros. According to data centralised by ZF, financing attracted by companies within the Gedeon Richter Romania group from the majority shareholder, Richter Gedeon Vegyszeti, exceed 90 million euros between 2006 and 2008. The 23.7 million-euro loan approved by the shareholders must be repaid by the local branch between 2009 and 2013. Therefore, the parent company will finance Gedeon Richter’s investment plan for this year. The latest capital increase within the Romanian branch was performed in October 2007, when the capital of Gedeon Richter Farmacia, the company’s retail division, increased from 7.9 million RON (2.4 million euros) to 43.9 million RON (13.3 million euros). Gedeon Richter is the only pharmaceutical company in the Romanian pharmaceutical industry with integrated operations – production, distribution and retail. In Romania, the group holds a drug plant in Targu-Mures.