SIF Oltenia buys 10% in Biofarm

SIF Oltenia on Thursday bought 10% in drug marker Biofarm Bucharest on RASDAQ and paid 111.1 billion ROL (3 million euros) for it.

SIF Oltenia this way raised its exposure in the drug producers sector, the planned target of part of its funds over the following years. “We think drug production will witness considerable growth over the next years,” says Tudor Ciurezu, deputy chairman of SIF Oltenia.

The company also owns stakes in the two drug manufacturers listed on the Stock Exchange, namely Antibiotice Iasi and Sicomed Bucharest. SIF Oltenia owns 10.2% in Sicomed and 10% in Antibiotice.

“Our investment strategy targets, besides drug production, banks, insurers, telecommunications sector and power distribution,” says Ciurezu.

SIF Oltenia bought Biofarm stock at a price of 4,000 ROL, below the record high the company’s quote hit last week.

Biofarm traded for 4,000 – 4,700 ROL on Thursday and for 4,500 – 5,400 ROL on Friday, closing the week at 5,300 ROL.

Biofarm Bucharest drug maker in 2004 posted turnover worth 9 million euros, similar to turnover derived in the previous year.

The company’s profit last year climbed about 7% in euros, to 2.2 million euros (data in euros were calculated in line with average exchange rates ROL/EUR for 2003 and 2004). Biofarm registered a market capitalisation of 30 million euros.

SIF Oltenia early last week sold two stakes worth 1.5 million euros each, in BRD and Compa Sibiu.

The money SIF Oltenia paid for the stake in Biofarm practically came from the sale of its stakes in BRD and Compa.