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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.