Billion kroner deal makes Orifarm Denmark’s largest
Orifarm’s deal with Takeda, a global biopharma headquartered in Japan, has been finalized. With this, Orifarm becomes Denmark’s biggest supplier of medicines measured by the number of packages sold to pharmacies. The deal includes two factories, 600 employees, as well as more than 110 medicines and dietary supplements changing hands in what is one of Denmark’s largest M&A transactions in years. This puts well-known brands into Danish hands, creating even more jobs in Denmark and providing new business opportunities for Orifarm. All while Orifarm is once again publishing the best results in company history.
The transaction between Takeda and Orifarm of DKK 4.6 billion was first announced on 23 April 2020 pending regulatory approval, which has now been given.
Orifarm is already Europe’s largest parallel importer of pharmaceuticals. The acquisition triples production and sales of over-the-counter and prescription generics. With this, Orifarm becomes Denmark’s biggest producer of over-the-counter medicines, as well as the biggest Danish supplier of medicines measured by the number of packages sold to pharmacies.
“The deal is transformative for us. It provides added stability and gives us much more control over production lines,” says CEO Erik Sandberg, who is looking forward to welcoming the 600 new colleagues just after Easter.
Well-known brands in Danish hands
Among the 110 medicines and supplements Orifarm is acquiring are numerous well-known brands like Kodimagnyl, Pamol and Zymelin.
“Originally, Kodimagnyl and Pamol were Danish-owned brands. Now they are coming home again, and when we buy them at the pharmacy and elsewhere, we know that these brands contribute to the creation of Danish jobs and tax revenue once again. I think that’s nice to know,” says Erik Sandberg.
150 new jobs in Denmark
The purchase includes two very modern factories. One in Łyszkowice in Poland and one in Hobro including 600 employees, and more are needed.
“We’re taking on production and sales employees. However, we lack personnel in all support positions that are not part of the acquisition. That in itself creates 150 new jobs,” says Erik Sandberg. Recruitment and employment are in full swing, just as the head office in Odense is being expanded by 14,000 m2, and a new office in Søborg north of Copenhagen has been opened as well.
Historic deal for Orifarm
For Orifarm’s founder, owner and chairman, Hans Bøgh-Sørensen, the deal is historic.
“We future-proof Orifarm, cement our strong position in the Nordic market while expanding significantly in the northern European markets for generics. We expect a lot from Poland in particular, which is a new market for us,” says Hans Bøgh-Sørensen.
Following the acquisition from Takeda, Orifarm now employs about 1,900 people, of whom roughly 450 are based at the head office in Odense.
Orifarm’s good results over the past several years have equipped the company for the big purchase. The completed deal coincides with the publishing of Orifarm’s 2020 accounts. The results are the best in the company’s history.
Revenue has risen to EUR 1,115 million – up 14% from 2019. Earnings before tax excluding acquisition costs have increased to EUR 51.4 million, an increase of 12%.
“In 2019, we delivered the best result in the company’s 25-year history. Now we have managed to beat the result in a very challenging year defined by Covid-19. This is due to the enormous and dedicated effort of all our employees. And this effort enables the company to grow continuously,” says Erik Sandberg.
For further information, please contact: CEO Erik Sandberg tel. +45 2265 0121