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Orifarm Group A/S has announced that the Global Credit platform of the global investment firm Carlyle (NASDAQ:CG) has agreed to commit strategic capital to Orifarm to support its future growth. Subject to relevant regulatory approvals, the transaction is expected to close in Q4 2024. Orifarm is a dynamic, family-owned, international healthcare company, supplying high quality pharmaceuticals at affordable prices through a unique commercial platform covering three business areas: Pharma Trade, Specialty Rx and Consumer Healthcare. Orifarm was founded in 1994 by Hans and Birgitte Bøgh-Sørensen and will remain privately owned by the family following this transaction. This strategic investment will look to strengthen Orifarm’s ongoing expansion, both organic and inorganic, building on its strong pan-European presence, and expand its coverage of accessible, high-quality, and affordable medicines. Hans Bøgh-Sørensen, Chairman and founder of Orifarm, commented: “Since founding Orifarm over 30 years ago, the drive for continuous growth and development has been the cornerstone of our success. As a family and multi-generational owner, it is essential that Orifarm retains the financial flexibility to continue pursuing its growth ambitions while delivering on its purpose of supplying affordable medicines and remaining true to its heritage and the Orifarm way of doing business. We are delighted to partner with Carlyle’s credit business to support the next chapter of Orifarm’s growth.” Erik Sandberg, CEO of Orifarm Group, said: “This strategic investment will significantly enhance our ability to capitalise on the attractive opportunities, both organic and inorganic, that we positioned Orifarm for following the transformational asset deal with Takeda in 2020. We are confident that this marks the start of an exciting future for the business, our employees, and other stakeholders.” Nicola Falcinelli, Deputy Head of European Private Credit at Carlyle, said: “We are delighted to support Orifarm, a multi-generational founder-owned business with a dedicated focus on product quality, affordability and accessibility. This transaction underlines our ability to provide tailored capital solutions to established, family-owned businesses in order to accelerate their growth trajectory.” The terms of the transaction are confidential. Rothschild & Co acted as the sole financial advisor to Orifarm and owners, Habico, together with the owners’ dedicated family office, Habico Invest. Kromann Reumert was legal advisor to Orifarm and Habico.   About Orifarm Orifarm is a dynamic, family-owned, international healthcare company, supplying high quality pharmaceuticals at affordable prices through a unique commercial platform covering three business areas: Pharma Trade, Specialty Rx and Consumer Healthcare. Orifarm was founded in 1994 by Hans and Birgitte Bøgh-Sørensen. Orifarm Group, headquartered in Odense, Denmark, is Europe's largest parallel importer of pharmaceuticals and Denmark's largest supplier of pharmaceuticals. It is one of the largest Danish pharmaceutical companies with 2,300 employees in 16 countries and with an annual turnover of more than €1.5 billion.   About Carlyle Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $435 billion of assets under management as of June 30, 2024, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 29 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle and LinkedIn at The Carlyle Group.

Today, Orifarm Group announces that Mads Fink Eriksen will join the Group on 1 October 2024 as the Chief Financial Officer.   Mads comes from a similar position in Ecco and brings extensive experience within end-to-end processes from roles held in production and procurement as well as in sales. Mads has significant international experience from a career that spans leadership positions in China, India, Singapore and Australia. He holds a Bachelor in Business Administration from Aarhus University and an Executive MBA from INSEAD.    “I am looking forward to welcoming Mads to Orifarm. I am sure we will benefit of his experience and strong strategic mindset when growing Orifarm in the future,” says CEO Erik Sandberg.   “Orifarm has an ambitious and inspiring future strategy, which I look forward to helping to fulfill. I hope to bring some new perspectives to the daily work and, not least, to get to know all the talented employees at Orifarm,” says Mads Fink Eriksen.   Mads succeeds Jacob Berg Lucassen who will leave Orifarm after mutual agreement. Jacob has been with Orifarm for 17 years and has played an incremental role in building our Finance set-up to where it is today.    “I would like to express our gratitude for Jacob’s relentless efforts in improving our Financial set up, which has seen significant enhancement over the past years, and in general for his significant and very loyal contribution to Orifarm. We wish Jacob all the best in his future endeavors,” says CEO Erik Sandberg.  For further information please contact Orifarm’s Corporate Communications. 

At Orifarm, Student Assistant like Frederik Krabbe Jepsen receive more than just a paycheck - they also have a share of the company's profits on equal terms with all other employees. The bonus is part of Orifarm's inclusive culture, reflecting its commitment to valuing every employee.   For Frederik, a master’s student in Business, Language, and Culture (Negot) at the University of Southern Denmark (SDU), being included in the bonus scheme is part of a through-going view on Student Assistants as equals who are trusted with own responsibilities: “I enjoy that Student Assistants receive equal treatment to other employees. We’re actively included in decision-making processes related to our tasks and are entrusted with completing and delivering our own assignments. This approach contributes to our experience in learning the ways of functioning in a workplace. Being included in the bonus scheme is of course also a great recognition of our work, and something I highly appreciate,” says 26-year old Frederik Krabbe Jepsen. Frederik is completing his master’s degree while working in Orifarm’s Parallel Imports Procurement department. His responsibilities range from handling invoices and cross-referencing them with the correct prices to assisting the Hospital Sales department in bidding on tenders for hospitals. “For me, it is essential to learn how to ‘go to work’. My studies serve as a foundation, but at Orifarm I develop and strengthen the competencies necessary for my future career,” says Frederik Krabbe Jepsen.     Inclusivity and shared success Orifarm’s Chief People Officer, Andreas Friis, explains the company’s philosophy: "Our culture is about inclusivity and shared success. Student Assistants contribute to our results, so of course they are also rewarded in our common bonus scheme on equal terms as all other employees. At Orifarm, bonusses are based on our shared overall success, not on individual performance." Andreas Friis also highlights the mutual benefits of employing student workers. "They bring fresh knowledge and diverse perspectives from their studies, enriching our workforce. At the same time, they gain valuable practical experience, which makes them stronger candidates post-graduation. Many choose to stay with us after completing their studies." Orifarm’s inclusive bonus scheme and supportive work environment make it an attractive place for Student Assistants to develop their careers, benefiting both the company and its young talent.

"Responsibility and a learning-friendly environment," echoes Student Assistants Sarah Bedford and Frederik Krabbe Jepsen when asked what comes to mind when they think of Orifarm. Across our organization, Orifarm employs more than 60 Student Assistants, contributing with fresh perspectives and providing valuable support across our organization. Beyond assisting with tasks, students gain practical work experience, develop professional skills, and make connections. In return, they contribute with curiosity and open-mindedness. Frederik, who works in Procurement and studies Business, Language, and Culture, highlights the fact that students are treated like other employees: “I enjoy that Student Assistants receive the same treatment as other employees. For instance, we are part of Orifarm’s employee bonus scheme just like everyone else. We’re also actively included in decision-making processes, and our colleagues trust that we deliver on our own tasks. This approach helps us learn ‘how to go to work’,” he says. Sarah, who studies Biomedicine and works in Regulatory Affairs, appreciates that her job is flexible and aligns with her studies: “Regarding work schedules and remote work, we enjoy equal flexibility as other employees. This allows us to balance work and studies even on a tight schedule and fosters a sense of respect and trust,” says Sarah Bedford and continues: “Most of my tasks are related to my studies. Traditionally, Biomedicine students end up in research, but I can’t see myself as a researcher. Here at Orifarm, I get to use my knowledge in a different way, and that’s exciting,” says Sarah Bedford. It is safe to say that Student Assistants are great assets to Orifarm, and we are proud of all the young minds contributing to our mission of creating healthy days for all.

Orifarm employs several nurses. One of them is Camille Løve Andersen, who works as a Change Management Specialist in our Corporate People & Culture.  Camille’s background as a nurse hasn't just been a steppingstone but an indispensable resource in her current role at Orifarm, where she leverages both her professional expertise and human empathy to steer change management processes.   As a nurse, Camille has cultivated the ability to analyze situations with both a critical eye and a heart that understands the human aspect. This blend of analytical skills and empathetic insight is a gift, especially when faced with new and challenging situations where the need for change is urgent or demanding.  We’re proud to employ nurses like Camille who not only care but also lead and inspire change.

In spring, Orifarm's Data Community gathered for its 5th landmark event, a testament to Orifarm’s commitment to staying at the forefront of AI and machine learning innovation.   The event, attended physically and virtually by Orifarm employees across locations, served as a vibrant platform for unveiling the complex world of AI and Machine Learning and showcasing AI’s many abilities.  The Data Community Event is a quarterly initiative which started 2 years ago, engaging Orifarm employees working with data or interested in data. At its start 20 data enthusiasts were involved – a number that has since grown to over 120 participants.  Naturally so, a recurring theme of the event was the anticipation surrounding OriChat – Orifarm’s very own conversational genAI tool soon launched throughout the organization. The excitement led to a number of questions and discussions about the future capabilities and applications of OriChat within Orifarm. Given the interest, Orifarm is already planning the next stage of this initiative, promising to delve deeper into the practical applications of genAI. 

Following a satisfactory 2023, resulting in another record for both revenue and operating profit, Orifarm now prepares for further growth.  Highlights from the 2023 accounts: Revenue increased by 3.6% to €1.567,7 million, which is a new record for Orifarm.  The Pharma Trade unit, which among others includes parallel import of pharmaceuticals, sets a new revenue record for the seventh consecutive year.  The gross profit increased by 16.3% to €268.3 million, while the operating profit increased by 29% to €76.0 million.    2023 was characterized by optimizing internal processes as part of the integration process after acquiring over 100 products and two production sites from Takeda in 2020.  The high level of investments from the year before was maintained, meaning that Orifarm collectively has spent €90.8 million on improvements over the past four years.  The number of employees increased by 5% compared to the previous year to a total of 2,242 employees (average number of full-time employees)  Orifarm, one of Europe’s largest parallel importers of pharmaceuticals, Revenue increased by almost 4% to €1.567,7 million, which is the highest revenue yet in the family-owned business headquartered in Denmark, shows the company’s financial statement for 2023 released today along with the company’s ESG report. The operating profit increased by a staggering 29% to yet another record of €76.0 million. The result is achieved despite Orifarm in 2023 spending €28.0 million on restructuring and integration following the acquisition of products and production sites from Takeda in 2020 as well as expenses covering the closing of the impacted negatively from low currency rates in Sweden and Norway. However, only deeming the financial statement satisfactory is due to the annual profit after financial items decreasing by approximately 13% to €22.4 million. This is caused mainly by a significant increase in interest payments impacted by increasing inflation and the high interest rates derived. “2023 was characterized by a focused effort to serve our customers and patients while implementing internal improvements. We addressed the supply chain issues stemming from the acquisition in 2020, while also further optimizing and professionalizing our business,” says CEO of Orifarm, Erik Sandberg, commenting on the financial statement. Record revenue for the seventh consecutive year “I am particularly pleased that our parallel imports business has set another record for both revenue and gross profit for the seventh consecutive year. It is a fantastic result in a market with increased competition and price pressure. At the same time, our generic pharmaceuticals show progress after a period with supply issues following the acquisition of more than 100 products and two production sites in 2020. Those issues are now solved, and the coming years look promising,” says Erik Sandberg.   During 2023, Orifarm has invested more than €25.6 million in improving the company’s processes and systems as well as inaugurating a new building at its headquarters in Denmark, which houses approximately 700 of the company’s nearly 2,300 employees.  Collectively, Orifarm has invested more than €90.8 million in improvements preparing the company for further growth in the coming years. 2024 expectations For 2024, Orifarm expects its revenue to grow by up to 10%, while the operating profit is expected to increase by between 5 and 15%. Growth is to occur organically as well as through acquisitions. “Orifarm is in a good position focusing on further growth in a market permeated by tough price competition. We have a strong platform in the Nordics, where we want to strengthen our portfolio and the strong product brands, we acquired in 2020 further. We also see potential in our German business, which year after year performs very well, with room for further growth,” says Erik Sandberg about the expectations for 2024. Additional information  For additional information, please contact VP Corporate Communications in Orifarm, Kristian Lysgaard, on +45 2556 8561 or krlys@orifarm.com.   

As Orifarm grows to make healthcare accessible to as many as possible, so does cross-border collaboration and engagement in all parts of our company.   Recognizing the importance of effective communication in our multinational environment, where English serves as our corporate language, we have initiated a 12-week course for interested warehouse colleagues in Denmark. This course, comprising 12 sessions of 3 hours each, aims to equip our warehouse team with the necessary language skills to excel in their roles, serving Orifarm locations all over Europe.   The enthusiasm among our employees is evident and all participants are eager to master skills such as writing and reading emails in English and engaging in job-relevant conversations.  Here's to embracing new learnings.

Orifarm steps into the future of workplace innovation with the launch of our very own Artificial Intelligence tools.  Our new Orifarm Generative AI tools are set to revolutionize the way we work, empowering all Orifarm colleagues with support and efficiency in day-to-day tasks. The tools are designed to assist colleagues regardless of function, boosting productivity and freeing up valuable time for creativity and strategic thinking. Looking for opportunity has always been deeply rooted in the Orifarm DNA.  By embarking on the journey into the future of work with our own AI tools, we limit the risk of data leaks to outside parties; as with everything we do, we are committed to ensuring the highest level of safety.