Oriola enters Russian pharma market

The Finnish Oriola-KD group has agreed to acquire a 75% stake in the Russian pharmaceutical wholesale and retail companies Vitim & Co and Moron Ltd. It will pay between 70.0 million and 90.0 million euros ($110.4-$141.9 million) depending on the financial performance of the companies this year. The operation is expected to be completed next month and Oriola will acquire the remaining 25% of the Russian enterprises in 2009.

Oriola has said it will invest considerably and provide logistical expertise to reinforce the operations and their competitiveness in partnership with the current owners of the companies, Igor and Oleg Yankov. The two Russians will continue in their management roles in Vitim and Moron and hold 25% in the Finnish-based holding company which will fully own the Russian operating enterprises. Vitim posted net sales of 76.0 million euros in 2007 with pre-tax earnings of some 6.0 million euros while Moron registered net sales of 296.0 million euros last year with a modest loss after 2006 earnings of some 6.0 million euros. The current value of the total Russian pharmaceutical market was put at 10.0 billion for 2006.