Orifarm breaks growth records again

Major acquisition and organic growth drive strongest ever performance

Danish healthcare company, Orifarm, can celebrate an excellent result for 2021. Continued success in the parallel imports business and the EUR 615 million acquisition of 110 healthcare brands from Japanese Takeda, including the Danish brands Pamol and Kodimagnyl, have driven up operating profits by close to 40%.

For the family-owned pharmaceutical company, 2021 was the sixth consecutive year of top-line growth. Turnover rose 27% to DKK 10,54 billion (EUR 1,417 billion). Operating profit reached DKK 412.8 million (EUR 55.5 mill.) – 39% up on the previous financial year, despite the impact of DKK 183 million (EUR 25 million) in non-recurring costs due to the Takeda integration.

A year of challenges

CEO Erik Sandberg calls the results especially impressive for a year characterised by sourcing and supply chain constraints and increased price competition:

“It is amazing that, regardless of a major commercial Takeda product introduction last year involving many European countries, we delivered our best performance ever in our parallel import business. I am very proud of the effort of our 2,200 employees.”

The 2021 annual report also includes nine months with former Takeda brands since Odense-based Orifarm acquired 110 Takeda healthcare brands, including generics, vitamins and minerals by April 1, 2021.

Better access to healthcare

According to Erik Sandberg, the more diverse product range gives the company a robustness and resilience that makes it better positioned to achieve its ambition – to make affordable, high-quality healthcare as widely accessible as possible.

“Our one-stop-shop, with more than 5,000 pharmaceuticals, vitamins and minerals on our shelves, represents a strong combined offering to our customers, including pharmacies, consumers, hospitals and wholesalers. The Takeda integration has taken us to a new level of opportunities and is the latest chapter in Orifarm’s 27-year growth journey,” he says.

In 2022, Orifarm expects revenue growth of 5% to 10% and operating profit growth in the 10% to 20% range, as the full effect of the newly acquired product portfolio kicks in.

Further information is available from Communication Consultant, Trine Nielsen: trnie@orifarm.com.

Orifarm Group is one of the largest Danish pharmaceutical companies with 2,200 employees in 13 countries and with an annual turnover of more than DKK 10 billion. Orifarm Group, headquartered in Odense, is Europe's largest parallel importer of pharmaceuticals and Denmark's largest supplier of pharmaceuticals. Every fifth product sold in Danish pharmacies comes from Orifarm. The company's purpose is to provide as many people as possible with access to cheaper quality medicine.

Key ratio - Orifarm Group (in million Euro)