OPG Boosts Profits Through Acquisitions

Netherlands pharmacy cooperative OPG UA of Utrecht has posted net profits of 69.2 million guilders ($39.4 million) for the year to April 30, 1996, an increase of 5.6% on the previous year. Profits are expected to be affected by market price changes on the Dutch drug market.

Legislation to reduce health care costs came into effect on June 1, which fixed maximum prices aligned with averages prevailing in other European Union countries. OPG was forced to ease prices last year as competition intensified. Profits growth was achieved largely through acquisitions in the medical production and trading sectors. OPG acquired Hoek Loos (medical equipment), the Belgian wholesale group Flandria and some pharmacies from the Dutch group Ahold. Operating profits in 1995/96 improved by 12% to 111 million guilders and group sales rose 25% on acquisitions to 2.6 billion guilders.