Romanian Antibiotice Iasi Deemed Strategic Unit, Transferred To Health Min

Romanian state-owned drugmaker Antibiotice Iasi SA (ATB.RO) will be transferred to the Health Ministry, which will take over the majority stake the country’s privatization authority AVAS holds in the drugmaker, according to Iasi mayor Gheorhe Nichita.

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Afterwards, Antibiotice Iasi will be declared a strategic unit.

Nichita, equally the vice-president of the Social Democratic Party PSD, part of the rulling coallition, added the main advantage of this transfer is the factory’s profit could be reinvested.

Romanian Government will take a decision on this issue in its next meeting, he also said.

The privatization of Antibiotice Iasi is not an option at the moment, and the factory is due to keep all its range of products, Nichita added.

According to Nichita, the actual transfer of Antibiotice’s shares from AVAS to the Health Ministry will be made in two months at most.

Antibiotice Iasi posted a preliminary net profit of 10.1 million lei (EUR1=RON4.2862) in 2008, down 3.2-fold from a year before. The company’s revenue was down 1.5% in 2008, at RON233.7 million.

The company forecasts a 10% higher turnover in 2009, at around RON240 million, compared with its 2008’s preliminary turnover of RON215.8 million, the company said.

AVAS holds 53.02% of the company's shares, while regional investment fund SIF Oltenia (SIF5.RO) has a 10.1% stake.

On the Bucharest Stock Exchange Thursday, Antibiotice closed at RON0.386 a share, down 1.53% on the day.

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