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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.”

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.

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.