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Slovenian Krka buys stakes in two Chinese firms
Written by Reuters   
Jun 24, 2008 at 01:29 PM

LJUBLJANA, June 23 (Reuters) - Slovenia's pharmaceutical company Krka said on Monday it bought minority stakes in two Chinese pharmaceutical companies.

"Today Krka became a minority owner of two private pharmaceutical and chemical firms in China, that is of Cejang Menovo Pharmaceuticals Co. Ltd ... and Anhui Menovo Pharmaceuticals Co. Ltd," Krka said in a statement.

It said it invested $794,000 in each company, acquiring a stake of 7.5 percent in each of them.

"With this step Krka ensured itself a competitive supply of key chemicals ... for the productions of pharmaceuticals in Slovenia," it added.

It said joint annual sales of both Chinese firms amount to some $30 million a year.

Krka, which is Slovenia's largest listed company, owns factories in Slovenia, Croatia, Poland, Russia and Germany.

Last year it said it was eyeing takeover targets, mainly in Europe and Central Asia.

In November it bought a German generic drugs producer TAD Pharma for 97 million euros ($150.6 million).

Shares of Krka fell 3.45 percent to 91,9 euros on Monday while the blue-chip SBI index kept unchanged.

 

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