Large multimillion Euro acquisition

The large Danish pharma company Orifarm, leading in parallel import in the EU, has appointed Andreas Friis as its new Chief People Officer. Andreas Friis joins Danish pharmaceutical company Orifarm as Chief People Officer. Having previously held positions in Novo Nordisk for 11 years, Andreas Friis joins Orifarm with experience from the industry, including from pharmaceutical manufacturing at the benefit of Orifarm, who in addition to its support and sales functions also comprise three manufacturing sites globally.  The appointment of Andreas Friis comes at a time when Orifarm following a large acquisition of more than 100 new brands from pharmaceutical company Takeda, and consequently onboarded more than 900 new employees, now looking to develop the people area further to support the overall further development of the company.   “In Orifarm we see our people as our most valuable asset. That is why it has been important to find the right fit, searching for a person who can support Orifarm’s growth journey and assist in developing our organization further. I am very pleased to welcome Andreas Friis to Orifarm. With Andreas, we welcome a highly skilled HR leader, who not only has vast experience from various areas within HR, but who also comes with experience from our industry,” says Erik Sandberg, CEO of Orifarm.  A task Andreas Friis looks forward to undertaking:  “I look very much forward to joining Orifarm, and to assisting in developing the business further. I believe in keeping things simple and dynamic, and I find Orifarm’s founders’ mindset of entrepreneurship and maneuverability as a good point of departure in doing so,” says Andreas Friis.  Andreas Friis has his first day at Orifarm on 01 December 2023. He recently held a position as Responsible for People & Organization in the large Danish food company Danish Crown.

In a year of macroeconomic challenges and a focus on the continued transformation of Orifarm, the family-owned pharmaceutical company realizes increased revenue and improved operating results in 2022. Highlights from the 2022 accounts: Revenue increased by 7% to €1,513m, which is a new record for Orifarm.  Growth was driven by both business units, Health Access with 3% and Healthcare with 22%. Healthcare's growth, however, was positively affected by the fact that sales from acquired Takeda products only contributed to nine months of 2021 against all 12 months in 2022. Gross profit increased by 22% to a new record of €223.9m. The result for the year ended at €27.4m, which is lower than expected. This is due to one-off costs in connection with the closure of the Viminco factory in Skælskør, Denmark, as well as derived consequences of delivery issues, especially in the second half of 2022. Continued significant investments to strengthen Orifarm for future growth. Investments increased in 2022 by 35% to €26.2m, which brings the total investments in the past three fiscal years to around €65m. The number of employees increased by 9% to 2,136 employees compared to the previous year (average number of full-time employees). CEO Erik Sandberg, Orifarm Group A/S, comments on the result for 2022:  "We are once again increasing turnover with growth in both of our core businesses. Regrettably, our result after tax is unfortunately lower than expected. This is due to one-off costs in connection with closing our factory in Skælskør, Denmark, but unfortunately also the derived consequences of delivery problems. Externally, increased interest rates have also affected the result negatively.” In many ways, 2022 has been an unusual year for Orifarm, as the group has been focusing on completing the integration of over 110 products and two factories, which it took over in connection with the carve-out acquisition from Takeda in 2021. Orifarm completed the acquisition on 1 May 2022. "A carve-out acquisition is a huge exercise, which has also brought challenges for us. What frustrates me the most is that it has also brought about delivery problems, especially in the second half of 2022, with the problems it brings for customers and patients. We have put everything into getting it resolved, and I am happy to state that we are on the right track," says Erik Sandberg and at the same time sends his thanks to the employees. “I would like to extend my appreciation to all of our many dedicated colleagues for their great continued efforts in providing medicine to customers and patients, and at the same time taking part in the transformation of Orifarm,” says Erik Sandberg. Expectations for 2023  In 2023, Orifarm expects to continue the transformation of the business, as part of the execution of the company's growth strategy. "We are in a volatile time why it is difficult to predict the macroeconomic development, e.g., the interest rates, which necessitates that we remain agile and navigate in relation to the opportunities that arise. We continue to invest in building a more scalable business that enables us to integrate potential future acquisitions even better," says Erik Sandberg. 

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.

Orifarm wants to be even more competitive in its 13 countries. For this reason, the Danish pharmaceutical company has, among other things, analyzed the possibilities for its production in Denmark. “We can succeed if we have a clear competitive advantage in scale, portfolio or unique capacities that together give our customers and patients the best opportunities . We have analyzed nine separate criteria, including CSR, quality, delivery reliability, cost, capacity, short- and long-term investment needs, production capacity and product portfolio. As a result of this review and in order to strengthen our product portfolio, maintain our competitiveness and deliver reliable supply, we have decided to transfer our products, manufactured in our Viminco site in Skælskør, Denmark, to our Hobro site, also in Denmark,” Erik Sandberg, CEO in Orifarm, says. Orifarm will now have one large production unit in Denmark instead of two small units. Orifarm also has production in Poland. “This means that we are expanding in Hobro, while we unfortunately will have to close our good production in Skælskør. The latter we will do during the next year and a half in a proper way in collaboration with the 130 skilled employees in Skælskør,” says Erik Sandberg. He underlines that it has been a very difficult decision because the managers and employees of Viminco have all done an excellent job for Orifarm for many years.

A large number of pharmaceutical companies from 23 countries in Europe are donating medical aid to Ukraine's needy people by means of the large Danish pharmaceutical company, Orifarm. This is organized through the non-profit organisation Affordable Medicines Europe, headquartered in Brussels, and the medical aid, which comprises many different products, contains everything from insulin and morphine to over-the-counter painkilling medicines.The CEO of Affordable Medicines Europe, Kasper Ernest, is very satisfied with the great support amongst the 100 member companies to donate medicine to Ukraine."We feel great support among the companies for this important, humanitarian effort, and it is a wide range of medical products that we are able to deliver already now. We are in contact with the Ukrainian health authorities about their needs, and the mayor of Gdansk has made sure that a number of Polish trucks will bring medicine to Ukraine from Orifarm's Czech facilities outside Prague,” Kasper Ernest says.He adds that the European Commission has also approved that Affordable Medicines Europe will have the option of sending medicines from companies in the UK to Ukraine via the Czech Republic.Orifarm, which is headquartered in Odense, Denmark, is going to receive all the medicine from the organization's member companies, and CEO in Orifarm, Erik Sandberg, is pleased that the company's Czech facility will be able to receive and distribute the many products fast."There is a great need for medicine in Ukraine, and it is important to help if you have the opportunity. We have a very efficient logistics center in the Czech Republic, where management and employees have immediately assumed the task of receiving the large amount of medicine soon coming in from many companies throughout Europe. From there it will be shipped to Ukraine as soon as possible. In addition, Orifarm will donate a large number of products ourselves to the Ukrainian people,” says Erik Sandberg.

Orifarm has established a broad system to ensure the best possible onboarding to its more than 900 new employees to make everyone feel as welcome as possible from the first time they enter Orifarm. In this way, Orifarm aims to create a mutual foundation and an even more united organisation among its now 2,200 employees in 13 countries.  The past year, Orifarm, the large pharmaceutical company from Funen, has welcomed more than 900 new employees. To integrate all into the Orifarm family, the number of introduction programs has increased. Birgitte Ladefoged, Chief Human Resources Officer, explains that Orifarm’s onboarding process helps to remain the corporate culture and the special Orifarm DNA. “It is a solid stepping stone when you join Orifarm as a new employee. Both employees, leaders and also the owners themselves, Birgitte and Hans Bøgh-Sørensen, prioritise our onboarding program,” Birgitte says and continues: “It is a huge strength that the Orifarm story continuously is being told by the owners.”Birgitte also mentions Orifarm’s feedback culture which definitely is observed in the onboarding process: “We ask for feedback after each general introduction programme and based on the comments, the programmes are regularly adjusted. With it, we challenge status quo,” she says. When a newcomer joins a department in Orifarm, one will be introduced to colleagues and relevant stakeholders. Parallel with the onboarding process within the department, the new employee will take part in the organisation’s formal onboarding process which consists of several elements. With a buddy program, a general introduction programme and a welcome session by Orifarm’s owners, Birgitte and Hans Bøgh-Sørensen, the company aims to onboard its new employees in the best possible way. Looking back on the onboarding in 2021, evaluations of Orifarm’s introduction programmes indicated how their newcomers truly value the effort that is put into welcoming all our new colleagues. Patrik Krog Christensen, S&OP Partner Trade, joined Orifarm in September, 2021, and has recently experienced the Orifarm’s onboarding process: Unluckily, at Patrik’s first day in Orifarm, he became stuck in a tailback. Even though he had left his home in Vejle in good time, he was half an hour late. However, his leader and colleagues was by no means bothered by his delay. He was met at the parking space and followed to the office where they welcomed him with breakfast. “From the beginning, the spirit was very warm and friendly. I felt very welcome,” Patrik says. Josefine Toftdal joined Orifarm in 2021 as a Sales Executive Assistant and she explains that she has never heard of such an intensive introduction programme before. Patrik agrees: “This onboarding is different to other onboarding processes I have experienced. You are not just thrown to the lions but instead, you are given the exact introduction you need to fulfil your job in the best possible way. It makes it unique.”

As student worker, Cecilie Hartvig Petersen receives a share of her employer’s profit. She works at Orifarm, one of Denmark’s largest healthcare companies. Clothes, textbooks and café visits.Students are familiar with these expenses. But bonus from the student job was not a well-known concept for one of the student workers at Orifarm, Cecilie Hartvig Petersen, when an extra-large amount appeared at her account this January.”This was a pleasant surprise. I was not aware of the bonus scheme, when I suddenly discovered a larger amount than my normal pay. It was a good recognition of my work, as I don’t take it for granted that companies include student workers in their bonus schemes,” says 24-year old Cecilie (in the photo), who ordinarily studies law at the University of Southern Denmark, SDU in Odense.She recently started on her master’s degree, and concurrently with her studies, she works in the legal department of Orifarm’s headquarters located in Odense. Here, she partly solves known tasks of contacting solicitors’ offices and managing document handling, and partly engages in tasks she has never handled previously. ”We enjoy a pleasant tone at work, and I feel that I am being treated on equal terms with the permanent employees,” says Cecilie. And that is precisely the core of how Orifarm regards employees.”This is our culture. Everyone is part of our results, and that is why we have a common profit sharing scheme. At Orifarm – as is also becoming a general trend - bonus is not based specifically on individual results but on the entire success of Orifarm,” explains CHRO, Birgitte Ladefoged. She emphasizes that a position as student worker is of great mutual value. ”The student workers – like interns and trainees – are a valuable part of the workforce at Orifarm. Through their professional competencies they infuse us with the newest knowledge and theory within their competencies, and they also contribute to creating an important diversity through their many and various educational affiliations as well as in terms of age. Our student workers develop into more attractive young people while staying with us, as they get to combine their theoretical knowledge with solid practical tasks, which makes them a stronger candidate when they have completed their studies. Often, we also see that they choose to stay with us afterwards,” the CHRO tells. Where Cecilie will choose to work two years from now, neither she nor Orifarm can tell at this point. ”I would like to work and live in another part of Denmark than here at Funen where I come from. But as Orifarm has an office in Copenhagen among others – and also offices in other countries than Denmark – the opportunities are many. This makes Orifarm interesting as a workplace.”

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 Takeda 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. Best results 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.

With more than 1 billion EUR in turnover, the Odense based pharmaceutical company Orifarm can look back at 2020 as yet another record-breaking year. 2020 also marked the company’s 25th anniversary and included the company’s largest acquisition in history. In 2020, Orifarm's turnover increased 14% compared to 2019 and profit before tax excl. non-recurring items reached 51.4 million EUR, corresponding to a rise of 12% compared to the previous financial year. Orifarm’s growth for the fifth consecutive year is the result of a rise in sales of both parallel imported pharmaceuticals and generic pharmaceuticals. While sales of parallel imported pharmaceuticals constituted the largest share of the total turnover of 1,115 million EUR, sales of generic pharmaceuticals accounted for nearly 40% of the profit before tax in 2020. Orifarm’s CEO Erik Sandberg is pleased with the result and aware that it happens against a dark backdrop. “We cannot look back at 2020 without thinking about the COVID-19 virus, which hit many people, businesses, and societies hard. It is only thanks to the resilience, engagement, commitment, and flexibility of all of Orifarm’s employees that we  managed to continue our growth journey and to seize opportunities such as the acquisition of the Takeda assets. As a result of our combined efforts, we came out of 2020, where we also celebrated our 25th anniversary, stronger than ever”, says CEO Erik Sandberg. The year 2020 also marked the completion of the next step of the succession of Orifarm, where the owner of Orifarm Hans Bøgh-Sørensen transferred further shares to his three children Christian, Anne-Charlotte, and Andreas Bøgh-Sørensen to ensure that Orifarm will remain in the family’s ownership in future generations. Further, Hans Bøgh-Sørensen took over as Chairman of the Board of Directors. Further growth and a more balanced business portfolio Orifarm expects to achieve further organic growth within its two main business areas over the next years. In 2020, the business sold more than 28.3 million units of pharmaceuticals and healthcare products, representing an increase of 8.8% compared to 2019. Meanwhile, the acquisition of Takeda, including more than 100 products, two production facilities, and above 600 employees, will reinforce Orifarm’s position in key markets and expand its geographical reach to new markets. It will also lead to a more balanced business portfolio by making the parallel import of pharmaceuticals and the sales and production of prescription pharmaceuticals and over the counter (OTC) products equally important going forward. “In Orifarm’s 25 years of history, the owner family has always focused on creating a robust company. The acquisition of the Takeda assets is a real gamechanger for us, which will provide a larger portfolio of products and ensure a better balance between our business areas. As a result, we are in an even better position to handle future market fluctuations and unforeseen events such as COVID-19”, says CEO Erik Sandberg. Outlook for 2021 For 2021, Orifarm Group A/S expects revenue growth in the range of 10-15% and an operating profit growth in the range of 60-70%.

Orifarm Group, one of the leading pharmaceutical companies in the Nordic countries, has entered into an agreement to purchase a portfolio of select over-the-counter (OTC) and prescription pharmaceutical products sold in Europe from Takeda Pharmaceutical Company Limited for a purchase price of up to €615 million. Orifarm has acquired the rights for approximately 110 pharmaceuticals as well as 2 production sites. The acquisition is the largest in the company’s history and represents a key milestone in the company’s business strategy. The acquisition allows Orifarm to future-proof its business by strengthening the company’s  core business areas: parallel imported pharmaceuticals, over-the-counter pharmaceuticals, and prescription generic pharmaceuticals. The acquisition from Takeda will reinforce Orifarm’s position in its key markets and expand its geographic reach to exciting new markets, strengthening Orifarm’s position for the long-term from Orifarm’s heritage, where parallel import of pharmaceuticals has been the principle part of the company, the future sales and production of over-the-counter and prescription pharmaceuticals will become equally important. The products acquired from Takeda are a well-known and recognized portfolio across their key geographies, with significant brand recognition amongst pharmacists and consumers.  - Orifarm Group’s progress and record-breaking annual accounts in the recent years enables us to take this decisive step for the company’s future. It is a gigantic transaction for Orifarm and a game changer for Orifarm as a company. We will grow to a greater extent into a much more traditional manufacturing pharmaceutical company, and with the acquisition of both the line of products and two further manufacturing sites, we will be able to control a larger part of our value chain, says Erik Sandberg, CEO, Orifarm Group.    The record-breaking acquisition includes approximately 110 pharmaceuticals and dietary supplements, including well-known brands like Pamol, Kodimagnyl, and Zymelin.  It is anticipated that approximately 600 employees from the manufacturing sites, sales and marketing, and other select professionals supporting the portfolio and manufacturing sites, will transition to Orifarm at closing of the transaction.  The two highly modern manufacturing sites are based in Hobro, Denmark and Łyszkowice, Poland. Both sites produce a significant number of the pharmaceuticals, which Orifarm has acquired. The portfolio generated FY 2018 net sales of approximately €210 million.  The acquisition will future-proof Orifarm  Hans Bøgh-Sørensen, who is owner of Orifarm Group together with his family, considers the acquisition to be a giant step towards the long-time vision to build a company less exposed to fluctuations. -This transaction will always be a milestone in Orifarm’s history. During the company’s entire history we have focused on differentiation and development of the business from the beginning of Orifarm with parallel import in Denmark. At first, expansion to several countries, subsequently the business area of generic pharmaceuticals, and now the company will obtain its third business area with this large portfolio of over-the-counter pharmaceuticals, says Hans Bøgh-Sørensen, who is also Vice Chairman of Orifarm Group’s Board of Directors.  As the largest parallel importer of pharmaceuticals in Europe, parallel import represents 90% of Orifarm Group’s current turnover of close to €1 billion, but several acquisitions have now equalized this balance.   During summer 2019, Orifarm Group acquired the London-based company Pilatus, which added new business areas like comparator sourcing and unlicensed medicines. The acquisition of Pilatus also included a small division in the US which is expanding.  The large multi-million sized acquisition from Takeda will triple the production and sales of generic pharmaceuticals to approx. 25% of the total turnover with an expected increased part of the earnings as well. At the same time, Orifarm Group will become one of the largest producers of over-the-counter pharmaceuticals in the Nordic countries.   - The transaction has been in the pipeline for several months, and we now look forward to pushing forward to closing the acquisition and initiating the integration of the new employees and manufacturing sites to Orifarm’s existing organization, and to gain the full benefit of these new assets”, says Erik Sandberg, CEO, Orifarm Group.   The anticipated approximately 600 employees that will transition to Orifarm at closing of the transaction are divided between the manufacturing site in Hobro, Denmark, the manufacturing site in Łyszkowice, Poland, a sales force allocated to 8 different sales countries with large offices in Belgium and Poland, and other select professionals supporting the portfolio and manufacturing sites. After the acquisition from Takeda, Orifarm Group will employ around 1,800 employees, including close to 370 at the head office in Odense, Denmark.   The transaction is expected to close by the end of Takeda’s Fiscal Year 2020 (ending March 2021) subject to the satisfaction of customary closing conditions, receipt of required regulatory clearances and, where applicable, compliance with local works council requirements.  Orifarm is being advised by Danske Bank, Corporate Finance as our financial advisor and Kromann Reumert as our legal advisor in this transaction. Facts about Orifarm Group Orifarm Group is the largest parallel importer of pharmaceuticals in Europe and the largest supplier of pharmaceuticals in Denmark. The Group comprises a number of companies engaged in the import, production, re-packaging, distribution, registration, and sales of pharmaceuticals. The Group is engaged in parallel importing of pharmaceuticals from EU countries, which are sold in Denmark, Norway, Sweden, Finland, Germany, Holland, Austria, United Kingdom, and Belgium. Additionally, the Group is engaged in the sales of generic pharmaceuticals in the Nordic countries. A generic drug contains the same active ingredients as the original drug. The active ingredients are, however, no longer patented, and the generic drug can therefore be produced and sold at a lower price than the corresponding original. Orifarm Group is headquartered in Odense, Denmark, and employs approx. 1,200 employees until the acquisition from Takeda.

The Odense based pharmaceutical company Orifarm is presenting a new record-breaking annual report with the highest turnover and earnings in the company’s 25-year history.  In 2019, the turnover of the Orifarm Group reached MEUR 982. An 18% increase compared to the record-breaking year 2018. Profit before tax in 2019 reached MEUR 45.4 corresponding to a rise of 30% compared to the previous record from the financial year 2018.  The progress in 2019 is mainly attributable to a strong sales growth of parallel imported pharmaceuticals at the German market, which is also Orifarm’s largest market. Orifarm increased its market share and generated both higher turnover and earnings. Also generic pharmaceuticals showed progress where in particular the Norwegian market grew.  For Orifarm’s CEO Erik Sandberg the result is more than approved. - We have all worked hard and been careful not to rest on the laurels from last year’s result, and I am proud of the result we have achieved as a team. In addition to the awesome result we have also implemented a number of digitalization projects in our operation, which will make us even more competitive in the future. A future, of which we have high hopes.   Targets of continued growth  Orifarm Group has ambitions to continue the growth in the next few years. There is still a lot of potential within the two existing business areas, parallel imported pharmaceuticals and sale of generic pharmaceuticals. All in all, Orifarm has sold more than 26 million boxes of medicine in 2019. This entails another record for Orifarm.  In 2019, operating income increased by MEUR 7.8 to MEUR 48.1.  The parallel import business has not only increased the turnover in Germany, but also in Finland, Austria, and United Kingdom. However, the exchange rates in especially United Kingdom and Sweden have affected the earnings unfavorable.  The sale of generic pharmaceuticals in the Nordic countries has also been in clear progress in 2019, where turnover has increased with nearly 8%.  Acquisition – a part of the growth strategy Contemporary with the growth of the present business, Orifarm Group acquired the London based company Pilatus Comparator Solutions during summer 2019. Pilatus adds new business areas like comparator sourcing and unlicensed medicines to Orifarm Group.   - The acquisition of Pilatus is an example of the fact, that we keep a close eye on possible acquisitions which have synergies in terms of our present business areas. Pilatus has added some new activities, which we are about to develop and which we can infuse with a lot of muscle work with our comprehensive experience in parallel import, says Orifarm’s CEO Erik Sandberg.     Outlook for 2020 Orifarm Group’s target is a minor growth in revenue in 2020 and retention of earnings at 2019 level. 

For Orifarm, 2018 was a fantastic year. In fact, the best in the company's nearly 25-year history. Every day, the employees work hard to challenge the pharmaceutical market to provide cheaper pharmaceuticals to millions of consumers in Europe. And the employees do it well. In 2018, Orifarm Group sold more than 25 million products - or approx. 7% more products than in 2017, and this has resulted in record turnover and earnings. This week, Orifarm Group releases its 2018 Annual Report and the result beats all former company records. The Group's revenue increased by 4.7 % in 2018 to MEUR 833. Operating income excl. non-recurring items increased by MEUR 6.5 to MEUR 40.3, and earnings before tax increased to  record high MEUR 34.9. A very satisfactory result for the Group, which also exceeds the expectations. Erik Sandberg, who officially took over as CEO in January 2019, says: “In many ways, 2018 has been a fantastic year for us. A year where we have met lots of challenges in the markets, and where we have been through a major reorganization internally. Nevertheless, we have succeeded in creating great results for the Group together. It proves our willingness and ability to make a difference - for consumers, society and the company. All employees can be proud of what we achieved together in 2018, as it would not have happened without them.” More consumers have bought Orifarm's products The Group's financial growth was especially generated in the parallel import business, which repackages and sells pharmaceutical products within the EU / EEA. The parallel import business sold 11 % more products in 2018 compared to 2017, which led to growth in both revenue and earnings in 2018. The 2018 revenue from parallel imported products totalled MEUR 756. This is an increase of 4.9 % compared to 2017. The result of main activities excl. non-recurring items increased by MEUR 8.0 to MEUR 34.2. In spite of intense competition in 2018, Orifarm succeeded in generating great results in Germany, which is the Group's largest market, as well as in Denmark, the Netherlands and Austria. In Sweden, the Group's earnings has been under pressure due to the Swedish currency exchange rate, but Orifarm maintained its position at the Swedish market. The parallel import business sold more products in the UK in 2018 compared to the previous year, but the weak British currency puts pressure on the profit. The Group's other business area, the generic pharmaceuticals, had a difficult year with stagnation in revenue and decreasing income. Nevertheless, the generic pharmaceuticals sold 4 % more products in 2018 compared to the year before. Challenging market conditions and challenges in maintaining a stable supply of few, and normally well performing products, put pressure on the Group's revenue and earnings from the generic products. Operating income fell by MEUR 2.6 to MEUR 9.7, however, it was possible to maintain revenue at the same level as in 2017 (MEUR 9.7). “We have done well in 2018 in difficult conditions, and we have the ambition and the belief in being able to continue growth and a positive development for Orifarm. But we are also realistic and 2019 will be at least as challenging as 2018, characterized by strong competition at all Orifarm's markets. But we have so many skilled employees who drive Orifarm forward. Therefore, I am confident that together we can meet the common goals for 2019,” says Erik Sandberg, CEO at Orifarm Group.

Orifarm Group manages to provide cheaper pharmaceuticals to millions of consumers in Europe while earning money to invest in future activities. Despite fierce competition, Orifarm closes its fiscal year 2017 with an annual result showing 10 percent growth in net turnover and the second best earnings in the history of the company. This week Orifarm Group presents the financial statement of 2017 and the Danish-owned pharmaceutical company continues to do well. The Group's net turnover increased by 10 percent to EUR 797 million in 2017, the result of main activities rose to EUR 34 million and the result before tax increased to EUR 29 million. Lower priced parallel imported products are the main driverThe improved Orifarm Group results are in particular due to the parallel import business handled by Orifarm Parallel Import. The business division showed a positive development and reasonable results throughout mature as well as new markets. Orifarm Parallel Import, which repackages and sells pharmaceuticals within the EU - and constitutes the largest of the two business areas - accounts for a net turnover of EUR 720 million. This is an increase in net turnover of 11 percent when compared to 2016. Results of main activities excl. non-recurring items rose by EUR 4.2 million to EUR 26.2 million. Generic products, which are the Group's second business area and handled by Orifarm Generics, completed 2017 with a slight decline in net turnover as well as earnings. Net turnover for 2017 ended at EUR 77 million, which represents a decrease of EUR 2 million when compared to 2016. Results of main activities excl. non-recurring items decreased by EUR 2 million to EUR 12.3 million. The 2017 results follow several years of strong growth in Orifarm Generics, and Orifarm Group is now investing significantly to ensure future growth in the business area. President and CEO Hans Bøgh-Sørensen is very satisfied with the 2017 Group result: "In 2017, the parallel import business has performed very well. It is an area of fierce competition among many companies. Consequently, it requires a dedicated and focused organization with ambitious employees who understand how to make a good deal on behalf of society, consumers and Orifarm”, he says, continuing: "our mission is to challenge the pharmaceutical market to ensure a ‘better deal’ for all and, of course, I am happy to see when we succeed in doing this." Especially Germany, Orifarm's largest single market for parallel imported products, has contributed significantly to the excellent result, despite the intense competition and the same applies to Denmark. Orifarm is also successful in gaining ground in the new markets. In particular, the Netherlands and Austria contributed positively to the results in 2017. Orifarm Group invests further in generic products After several years of great success and significant growth within generic products, 2017 became a more even year for Orifarm Generics. Orifarm Generics performed well during the first half of 2017 in Denmark and Sweden, but faced fierce price competition in the second half of 2017 in both countries. However, the management of Orifarm Group remains fully confident that the generic business also has an important role to play in the future. Hans Bøgh-Sørensen elaborates: "We are convinced that also in the future we can make a big difference for consumers within generics - both in Denmark and in other markets as well. Therefore, the Group is investing heavily in Orifarm Generics' future growth, for instance in an extension of the laboratory at the location in Skælskør, Denmark. In Skælskør, employees work hard to develop new products, which we then produce and sell at favorable prices." The location in Skælskør houses Viminco, which employs approximately 100 employees. Orifarm Group acquired Viminco in 2015 as part of an increased strategic focus on retail medicine and niche products. Synergies support future growth Orifarm is an ambitious company that strives to achieve even better results. In order to ensure the right foundation for future growth, Orifarm has just begun restructuring the company. Hans Bøgh-Sørensen says: “We see many changes in Orifarm´s environment these years and our business is developing rapidly. As responsible managers, we must always ensure that the company and the employees are well equipped to meet the challenges of the future. Therefore, we have just decided to break down the silos internally and merge the two business areas to a higher degree than we have had so far. In this way, we expect to benefit from the many synergies that exist across the two business areas, thus creating a solid foundation for further growth in the Group."Orifarm Group expects activity and results for 2018 to be at same level as 2017.

Danish pharma company Orifarm, leading in parallel import in the EU and owner of numerous healthcare brands, announces its recent appointment of Birgitte Røddik as new Chief Corporate Compliance Officer. Birgitte Røddik takes on the role of Chief Corporate Compliance Officer in Danish pharma company Orifarm. Holding a Master’s in Science and having held positions in Medtronic and Novo Nordisk, Birgitte Røddik brings valuable insights from the pharmaceutical industry. “I am very happy to welcome Birgitte Røddik to the Orifarm team. Birgitte Røddik joins us with comprehensive experience from the industry, combining the quality function with operational planning and commercial outlook. With this insight, she is to ensure that our high-quality mindset persists throughout our organization, making sure that the quality of Orifarm products is maintained from manufacturer to supplier to end-user. Patient safety is our top priority,” says CEO of Orifarm, Erik Sandberg. With more than 25 years' experience in developing and executing strategy into viable implementation plans and operating models and combining these with quality, regulatory affairs, and operations excellence, Birgitte Røddik seeks to further develop the important compliance function at Orifarm: “Orifarm plays a substantial role in society when it comes to making medicine accessible at affordable costs. I look forward to continuing the work in Corporate Quality Compliance, ensuring that we support the transformation of Orifarm so that Orifarm continues to be a customer-centered and healthy business as well as a great place to work. I look very much forward to collaborating with the competent team in Orifarm and supporting the exciting growth that lies ahead for Orifarm,” Birgitte Røddik says. Birgitte Røddik had her first day at Orifarm on 01 December 2023. She most recently held the position as Partner in consultant agency Valcon.

Orifarm is proud to sponsor Sport’n’Charity – an organization helping children affected by cancer by offering physical activity known to improve the children's health in this vulnerable time. Orifarm is proud to sponsor Sport’n’Charity who helps children affected by cancer by offering individual training programs suitable to the course of their illness.  Scientific research shows that children and youth affected by cancer who are physically active during and after their cancer treatments can limit the risk of complications, illnesses, and disabilities. Sport’n’Charity is a cause truly close to our hearts in Orifarm. We are united in one, simple purpose: for as many as possible, as healthy a day as possible. “Orifarm exists to bring healthy days to as many as possible. Sport’n’Charity is about just that. Recognizing that we all have different challenges and possibilities, we are more than happy to support the work done by this fantastic organization to enable as healthy a day as possible for children that are fighting to overcome physical challenges second to none. These children are incredible, and we are genuinely proud to support them on this tough journey,” says Erik Sandberg, CEO of Orifarm. In collaboration with physiotherapists and training specialists, a training program is developed individually for every child. This means that the activities are tailored to the child’s course of illness; some train at home and some while in hospital. Research further shows that children affected by cancer who are physically active with others are more motivated to complete the training and do so for a longer period of time, which is why also their families and friends are welcome to join the training program. You can learn more about Sport’n’Charity here (information in Danish): www.sportncharity.dk

Following the successful integration of assets and people from Takeda, Orifarm will now simplify the business model. “Since the acquisition of the Takeda assets almost three years ago, Orifarm has changed quite significantly. We have integrated new businesses, we expanded into new geographies, and we welcomed many new colleagues. The combined effort of everyone in Orifarm has taken us far, and today we have a strong platform for continuous growth,” says CEO Erik Sandberg. A significant change will be the merger of the two business areas, Health Access and Healthcare, as they will be combined into one business area. “In order to sharpen our profile and offering towards our customers will we merge our two commercial business units into one, ensuring that we face the customers as one unified commercial organization,” says Erik Sandberg. To match the new commercial set up, Orifarm has decided to combine supply chains into one business unit covering sourcing and supply chain. Finally, Orifarm will adjust the rest of the organization to match the commercial setup and ensure efficient processes and an agile organization ready to respond to customer’s need. “With this restructuring we would like to prepare Orifarm for future growth by ensuring one face to the customer and operating in a more agile and lean organization,” says Erik Sandberg. Changes to the Executive Management Group As a consequence of the new organizational structure, a few changes to the Executive Management Group have been implemented. The combined commercial business unit will be headed by Thomas Brandhof, who will assume the role as Chief Commercial Officer, responsible for the entire portfolio and markets. Thomas was previously Chief Commercial Officer in Orifarm´s Health Access business unit.. Thomas Hedegaard has been promoted and will assume the position as Chief Sourcing Officer. Thomas was previously Vice President of Procurement in Orifarm’s Health Access business unit. The role as Chief Sourcing Officer is new in Orifarm, and Thomas will play a vital role in leading and developing an end-to-end supply chain, covering both the former Health Access and Healthcare business units.  There will be no changes to support functions, except that Corporate Communications will move to Global People & Culture headed by Chief People Officer, Andreas Friis. Consequently, VP, Corporate Communication Kristian Lysgaard steps out of EMG. Unfortunately, the changes also mean that Chief Commercial Officer, Orifarm Healthcare, Dennis Dencher, will leave Orifarm as his position is terminated. “It is with regret, we have to say goodbye to Dennis. He has been deeply involved in integrating the assets we acquired from Takeda, including welcoming more than 600 people and ensuring a successful integration. Dennis can be immensely proud of his significant contribution, and I wish him all the best going forward,” says CEO Erik Sandberg. The new Executive Management Group Chief Executive Officer Erik Sandberg Chief Financial Officer Jacob Berg Lucassen Chief Commercial Officer Thomas Brandhof Chief Sourcing Officer Thomas Hedegaard Chief People Officer Andreas Friis Chief Information Officer Klaus Mortensen Chief Corporate Compliance Officer Birgitte Røddik Corporate Development Officer Ulrik Markussen

Orifarm is one of the largest employers in the area around Łyszkowice, Poland, and is very closely tied to life in the local community. With our significant role, it is especially important to us that we are present and interact with the community around us. We always prioritize and enjoy inviting members of the community to learn more about Orifarm and the medicines we proudly provide to patients throughout Europe.    Yesterday, we had the pleasure of hosting a group of over 20 people from the municipality’s Senior Club, introducing them to Orifarm and giving a guided tour around our facilities. The group visited our production area, administration, and warehouse with great enthusiasm and listening very carefully through the entire tour.   The Łyszkowice manufacturing plant has been operating for several decades. In fact, 14 of the Senior Club’s 40 members are former employees at the plant, so for some the visit was also a joyous reunion. 

As one of Europe's major pharmaceutical importers, we are delighted to receive this recognition as part of the Healthcare and Pharmaceutical Awards 2023. Our goal is to make medicines more affordable and accessible to everyone.  To achieve this, we engage in parallel importing, a process where we import original pharmaceuticals from one country, repackage, relabel, and then sell them in another country. This allows us to offer these products at more affordable prices compared to the originals. Parallel imported medicine is the exact same as the original, but in a new package with information leaflets in the patients’ local language.  Through parallel import, we strive to enhance the accessibility and affordability of vital pharmaceuticals for the patients that need them, while also reducing the expense for the public healthcare systems.   We are happy to receive the Best Imported Pharmaceuticals Supplier in Europe 2023 award for our efforts, as recognized by the Global Health & Pharma Magazine in the UK. 

As the largest life science company in Funen, we want to create an even stronger foothold for the industry in Funen, which is currently home to over 40 companies in the life science sector.   Therefore, we have joined forces with a number of other Funen life science companies in the association Life Science Funen, where Andreas Søderman, who is the head of Medical Affairs at Orifarm, is a member of the board.  Since our humble beginnings in 1994, Orifarm has grown rapidly and we now employ 2300 employees, of which about 700 work in Odense. To fulfill our ambition for continued growth, it is crucial to be able to attract strong competencies to our employee group.  “Our employees are our most important resource to be able to fulfill our ambitions for the future. Denmark generally has a strong position in pharma and the industry is in continued growth. We constantly need qualified employees. This applies of course to the health sector, but also within other areas such as IT and the commercial area. The joint collaboration in Life Science Funen can help to strengthen the overall life science ecosystem in Funen, thereby assisting in the development and attraction of strong competencies,” says Torsten Laen, Director, People Attraction & Development.  “The collaboration between public and private actors is important to be able to strengthen the life science area. With our location in Odense, we have a good starting point - we are centrally located and have a good collaboration with strong, local actors, including educational institutions and teaching hospitals,” says Torsten Laen.  You can read more about Life Science Funen in this article, in which Andreas Søderman elaborates on the need for competent candidates for the industry (In Danish). 

Closing our Viminco production site in Skælskør, Denmark, we've prioritized comprehensive support for impacted employees. While our outplacement efforts aimed to assist all, it became evident that the outplacement initiatives were not ideal for our colleagues aged 60 and above.  That’s why we're offering a unique opportunity to our colleagues aged 60 and above affected by the closure of the site in Skælskør.  Recognizing their imminent transition into retirement, we've extended a tailored package that allows them to convert various support elements—such as salary increments, stay-on bonuses, outplacement assistance, and educational support—into a prolonged employment period.  This approach allows for transitioning directly from active employment into retirement without the pressure of seeking new job opportunities.  "It is important for us that all of our employees are treated with care and respect, and we are committed to supporting colleagues at every stage of their career – from entry to exit. We experienced that a group of employees would not benefit from the support, so we decided to offer our affected employees aged 60 and above the option to convert the offered support into a longer employment period, allowing them to prolong their employments until their retirement," shares Camilla Risum Amjadi, HR Business Partner in Orifarm.  The employees will have their employment period prolonged, but will be placed on garden leave until the site closes.  Production activities at the Viminco site in Skælskør, Denmark, have ceased, moving operations to other Orifarm production sites in Denmark and Poland. 

Orifarm is donating 4.5 tons of food supplements with short expiry dates to the Danish nonprofit organization Fødevarebanken.   Fødevarebanken fights food waste and food poverty in Denmark by distributing donated food to social organizations who provide care for people in need. “By collaborating with Fødevarebanken food supplements and vitamins that would otherwise be scrapped are put to good use – just as they were intended. The food supplements include products for pregnant women and babies, as well as multivitamins and omega-3 products. At Orifarm, we work to create healthy days for as many as possible. This collaboration is very close to our hearts and DNA,” says Lars Uglebjerg Olsen, Head of Global Innovation, OTC & Consumer Healthcare in Orifarm.  Today, Fødevarebanken collected 23 pallets of food supplements at Orifarm in Odense, Denmark, and we couldn’t be happier to see thousands of packets of great healthcare products being distributed to people in need. 

In November, Orifarm introduced Apovit food supplement at a pharmacy exhibition, attended by nearly 5,500 Finnish pharmacy workers.  The product lines launched are part of the Apovit Immune Boost effervescent tablet series. The Apovit Immune Boost products contain vitamin C and D, and the most popular flavors are made from real ginger and cranberry.  Previously exclusive to Denmark, Apovit's expansion into the Finnish market is a great milestone for Orifarm. We are very excited to introduce this beloved food supplement brand to a whole new audience.  A big thank you to everyone who played a role in making this launch a resounding success!  Read more about Apovit here: https://orifarmhealth.fi/tuotemerkit/apovit (In Finnish) https://www.apovit.dk/ (In Danish)

This weekend football talents from Denmark and abroad come together when the Christian Eriksen Cup kicks off just minutes from Orifarm’s headquarter.  “At Orifarm, we work every day to create healthy days for as many people as possible. As a National Partner, we have the opportunity to work toward that goal beyond Pharma. By promoting youth communities centered around sports, we support not only football talents but also an active community that fosters joy and health,” says Erik Sandberg, CEO at Orifarm.  Read the full announcement here: https://lnkd.in/dDb5Jvs5 

While it is common to meet pharmacists at your local pharmacy, they also play a key role in pharmaceutical companies like Orifarm. Pharmacists are experts in medicine and bring specialized knowledge to ensure the quality and compliance of pharmaceutical products. At Orifarm, pharmacists are appointed in various steps of our distribution process, ensuring that certificates, authorizations and other information is accurate. Pia Andkjær is a Regulatory Affairs Specialist at Orifarm, and as an educated pharmacist she brings relevant pharmaceutical knowledge to her role. Together with her team, Pia is responsible for submitting applications to the local authorities, ensuring that the our products meet the highest standards. Her knowledge and experience with working at a pharmacy brings valuable perspectives into her daily work at Orifarm: “Though being a pharmacist is not a requirement for working as a Regulatory Affairs Specialist, my pharmaceutical background ensures that I understand the content that I work with. Having worked at a pharmacy, I can also see things from the patients’ perspectives, which is crucial in our pursuit of creating healthy days for as many as possible,” says Regulatory Affairs Specialist Pia Andkjær.Pharmacists like Pia are imperative in our work as a pharmaceutical company, and we are proud to have them on our team.