Farmacol left out of the race for CF Cefarm

2010-02-10

Farmacol has not been invited for advanced-stage talks about the privatisation of CF Cefarm, the last drug distributor remaining in state hands. Of the three investors who submitted final bids, the Treasury Ministry decided to open talks with Polfarmex, a Polish maker of drugs and dietary supplements, and Eko-Berry, a property developer, the Treasury Ministry announced on 27 January.
Although Farmacol did submit a final bid in time for the 15 January deadline, the company earlier admitted that it was having second thoughts about the merits of a deal, given that CF Cefarm derives the bulk of its revenues from so-called pre-wholesale sales (supplying to other wholesalers), a low-margin activity. As Dariusz Kiczek, Farmacol CFO, told Pharma Poland News, the key investment for the distributor was the acquisition of Cefarm Bialystok in 2009 for PLN 71.53m (€17m), which strengthened the company’s position in the north-eastern region of Poland. However, taking into account the trend towards distribution market consolidation, Farmacol would be eying the market for future acquisitions, he said.
The state is offering to sell 85% of shares in CF Cefarm. The ministry hopes to complete the privatisation in the first half of the year.