Hungary's Richter Gedeon goes on spending spree in Poland, Russia and Romania

Hungary's leading drugmaker, Richter Gedeon, faced with domestic market woes, has announced plans to expand its business in nearby Poland and Russia, through the acquisitions of drugmakers Polpharma and Akrihin in the respective countries.

The firm proposes to combine with Polpharma, the largest generic drugs player in Poland, which will enhance Richter's market leadership, scale and capability in the region. This transaction values Polpharma at around 231.0 billion forint ($1.34 billion), with the consideration to be settled in new shares of the Hungarian firm. The Polish company is owned by Genefar, a Dutch investment firm whose interests are led by the Starak family. On completion, Genefar will own around 25% of Richter and Jerry Starak, who is currently president of the supervisory board of Polpharma, will become deputy chairman of the Hungarian group's board of directors.

To be biggest player in CEE