GlaxoSmithKline ($GSK) may not have to close a former Europharm plant in Romania that it no longer needs. It may be able to sell it instead.
"We are currently in talks with potential buyers. We received more offers than expected," said GSK Romania general manager Pascal Prigent, according to a story in Romania-Insider.com, which cites a story in the Romanian business publication Zf.ro.
In June, the U.K. drugmaker said it was looking for a buyer for the plant in Brasov, which employs about 250 people. GSK said if one could not be found, it would close it. The company cited overcapacity in its network after patent expirations. But Prigent said the company has gotten interest from both local and international buyers.
According to Romania-Insider.com, the factory in Brasov is the second-largest drug producer in Romania, with a profit of €11 million on revenues of €104 million last year. The 20-year-old plant makes 16 products including HIV/AIDS treatments, respiratory and depression drugs, and cold and flu treatments. GSK got the plant in 1998 when it bought a 65% interest in Europharm. It acquired the rest of the company in 2003. GSK has reportedly invested about $100 million in the plant since getting it 15 years ago.
Romania is part of GlaxoSmithKline's large bet on growth in emerging markets, but the company has its hands full on that front right now with an expanding investigation into bribery charges in China.
- read the Romania-Insider.com story
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