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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. 

 
Selected key figures 2022:

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: geavr@bevsnez.pbz.

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)

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’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.

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.

For further information, please contact: CEO Erik Sandberg tel. +45 2265 0121

In future, when you buy Kodimagnyl, Pamol, or Zymelin from your local pharmacy, these products will be brought to market by the Danish-owned Orifarm. This is the result of one of the largest M&A transactions this year between Orifarm and Takeda, a global biopharma headquartered in Japan,  and today the deal is finally closed with the approval from the Danish Competition Authorities. With this, Orifarm becomes Denmark’s biggest supplier of medicines measured by the number of packages sold to pharmacies.

“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.

Orifarm acquires 110 medicines and supplements from Takeda.

150 new jobs in Denmark

The many new jobs are created right away. 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.

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.

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.

For further information, please contact: CEO Erik Sandberg tel. +45 2265 0121

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. 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 25^th 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%.

For further information, please contact: CEO Erik Sandberg tel. +45 2265 0121

Key ratio – Orifarm Group (in million EUR)

Download Annual Report here.

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 further information, please contact:

Communication Manager, Andreas Lykke Sognstrup, tel. +45 3012 2351
CEO, Orifarm Group A/S, Erik Sandberg, tel. +45 2265 0121 

Key ratio – Orifarm Group (in MEUR)

Facts about Orifarm Group
Orifarm Group is the largest supplier of parallel imported pharmaceuticals in Europe and one of the largest suppliers of pharmaceuticals in Denmark. The Group is engaged in parallel import of medicines from the EU/EEA which are sold to Denmark, Norway, Sweden, Finland, Germany, The Netherlands, Austria, United Kingdom, and Belgium.

In addition to this, the Group is engaged in the sale of generic pharmaceuticals in the Nordic countries. A generic pharmaceuticals contain the same effects as the original pharmaceutical. However, the effect is no longer subject to patent and therefore the generic pharmaceutical can be produced and marketed at a lower price than the corresponding original pharmaceutical.

Orifarm Group has its headquarters in Odense and the entire Group employs close to 1,200 people today, of which around 360 in Odense.