Ljubljana related
STA, 11 July 2022 - VonPharma, a maker of food supplements, plans to open a manufacturing plant in Velenje. The company's CEO Tadej Von Horvath and Velenje Mayor Peter Dermol signed on Monday a purchase agreement for 14,580 square metres of land in a commercial zone, a project that the company says could create over 1,000 new jobs.
The first phase of the project will see a new administration building and a new manufacturing complex built by 2023. The EUR 15-20 million investment is expected to create 150-300 jobs, according to Von Horvath.
By 2024 the company hopes to open a new logistics centre and build a facility to produce skin care product, a project valued at EUR 15 to 30 million that could create between 500 and 700 new jobs.
The company has already submitted a request for a state subsidy for the logistics centre.
They chose to place the new complex in Velenje due to its strategic position and focus on entrepreneurship, Von Horvath added.
VonPharma focuses on natural food supplements. Last year, they generated EUR 1.2 million in revenue, with a net profit of EUR 43,000.
Velenje Mayor Peter Dermol said that the commercial zone offered plenty of opportunities for job creation, and that he is glad that VonPharma and the municipality have managed to reach an agreement.
STA, 17 March 2022 - Drug company Krka, which has significant exposure to the Russian and Ukrainian markets, said on Thursday it could not yet assess the impact of the current situation in these two countries on its operations in 2022. But it stressed it had a strong capital structure, robust money flow and no financial debt, so long-term operations were not at risk.
According to unaudited consolidated business results, Krka generated EUR 1.57 billion in revenue in 2021, up 2% from 2020. Net profit was up 7% to EUR 308.2 million, which is slightly more than what was reported in a preliminary report at the end of January.
The results in 2021 were not affected by the war in Ukraine and the impact on the 2022 results could not yet be assessed. Any changes to the projections for 2022 will be presented when reliable short- and long-term assessments of the consequences of the war will be possible, Krka said.
Krka is active in Ukraine and Russia through its three subsidiaries and the parent company Krka Novo Mesto.
TOV Krka Ukraine, which deals only with marketing and has no production facilities, is based in Kyiv, and Krka-Rus OOO, a drug manufacturer, is based in the town of Istra near Moscow, while its marketing and sales offices are in Moscow.
Russia is Krka's largest single market, where the group generated EUR 333 million in sales last year, which is 21.3% of its total sales.
In Ukraine, which was the third largest market for Krka in 2021, sales reached EUR 96 million, which is 6.2% of the group's total sales.
In Ukraine, all measures have been taken to preserve the health and security of the staff, and pharmaceutical products are being shipped in line with expectations given the circumstances, Krka said.
Sales in Ukraine for the first quarter of 2022 has been estimated at EUR 25.9 million, up from EUR 22 million in the same period last year.
In Russia, all activities are running without any major disruptions, although some delays are being recorded in transport.
Krka is selling its products in the Russian market in the local currency so it is exposed to some risks given the current depreciation of the ruble. The estimated sale in the first quarter was slightly up to EUR 79.9 million.
The key short-term risks for Krka are the current situation in Ukraine, economic sanctions, volatility and depreciation of the rouble and credit risks.
Medicines are not subject to sanctions - neither in exports nor imports. Krka estimates that other markets and sales regions will not be directly affected by the situation, while indirect impact on the other markets of the eastern Europe region will depend on the duration of the war.
Krka has been present in the markets of eastern Europe for more than 50 years and has been exposed to many challenges, which have in the long term further enhanced its market share, Krka said in a press release.
It added that its robust business operations were based on a system of vertical integration, which ensured resilience against external shocks and responsiveness to the rapidly changing market situation.
STA, 18 November 2021 - Drug maker Krka reported a group net profit of EUR 240.1 million for the first nine months of 2021, a year-on-year increase of 14% and the highest nine-month profit in the company's history, on the back of revenue that increased by 1% to EUR 1.18 billion.
Profit before income tax, depreciation and amortisation (EBITDA) was down by 8% to EUR 352.7 million, whereas pre-tax profit (EBIT) increased by 12% to EUR 271.3 million, shows the company's interim report released on Thursday.
Sales rose across all markets except Western Europe, where they declined by 13% due to fewer product launches and decreased use of medicines decreased due the COVID-19 pandemic.
In its key markets, in Central and Eastern Europe, sales rose by 4% and 5%, respectively. Sales in its largest single market, Russia, were flat in euro terms but rose by 14% in roubles.
Broken down by product category, sales of prescription drugs remained flat across the group, whereas sales of over-the-counter drugs rose by 8% and animal health products grew by 16%.
The group allocated EUR 45.3 million to investments in the first nine months of 2021, slightly less than in the same period last year, whereas overall R&D spending rose by 1% to EUR 113 million.
Chief executive Jože Colarič said the January-September figures were in accordance with expectations.
"We recorded the highest sales and net profit in the first nine months since incorporation. We maintained profitability at a high level and obtained marketing authorisations for 11 new products," he was quoted as saying.
The company's priorities remain to ensure sales growth, achieve higher-than-average sales growth in terms of market dynamics, and place among the leading branded generic pharmaceutical companies on individual markets and in selected therapeutic classes, he said.
STA, 21 October 2021 - Novartis has signed an initial agreement to use its manufacturing facility in Ljubljana to fill the Pfizer-BioNTech vaccine against Covid-19. The Novartis Technical Operations site in Ljubljana will fill at least 24 million doses in its sterile manufacturing facilities in 2022, the Swiss pharma company announced on Thursday.
Novartis plans to take bulk mRNA active ingredient from BioNTech and fill it into vials under sterile conditions for shipment back to BioNTech for its distribution.
Subject to reaching a final agreement, Novartis plans to start filling and finishing the vaccine in Ljubljana in the first half of 2022 once it has transferred the manufacturing process from Stein, Switzerland, to Ljubljana.
Novartis has been filling for BioNTech at its Stein site since June after the European Medicines Agency approved the filling-and-finishing plant. Under the agreement signed at the beginning of 2020, Novartis will fill more than 50 million doses of the vaccine in Stein this year.
Novartis says the facility in Ljubljana is "a state-of-the-art aseptic filling operation which manufactures and supplies a broad range of aseptic products" for its division Sandoz.
Novartis plans to disclose more details once it has concluded specific agreements. It did say however, that it continued to offer its "world-class capabilities to other companies to take over manufacturing activities including a variety of technologies such as mRNA production and others".
The Pfizer-BioNTech vaccine is the most widely used Covid-19 vaccine in Slovenia. According to the National Institute of Public Health, 1,514,526 doses of the vaccine have been administered in the country so far.
STA, 8 July 2021 - Pharmaceutical group Krka posted a net profit of EUR 177.4 million for the first half of the year, up 11% on the back of sales that reached EUR 808.6 million, up 1% over the same period last year, CEO Jože Colarič said at the company's annual general meeting in Otočec on Thursday.
Operating profit dropped by 8% to EUR 200.1 million according to early figures and gross operating profit decreased by 7% to EUR 254.7 million, Krka said in a release.
As much as 95% of the sales were generated on markets outside Slovenia, where products worth EUR 764.8 million were sold.
Krka's biggest single market, Eastern Europe, accounted for over 34% of the sales, or EUR 276.5 million, up 2%.
The dominant market within this region is Russia, where sales dropped by 7% to EUR 168 million, while growth was posted in most of the Eastern European markets and Asia.
Following Central Europe as the second biggest market accounting for 23.4% of the sales, Western Europe was third with an almost 20% share, and Germany the leader.
SE Europe placed fourth with 14% or EUR 112.3 million in sales, while in Slovenia, Krka's sales rose by 9% to EUR 41.8 million, accounting for 5.2% of group sales.
Other, overseas markets accounted for 3.4% of all group sales in the first six months, translating into EUR 27.5 million, up 14%.
The Novo Mesto-based group's investments in January-June amounted to over EUR 28 million, including over EUR 22 million at the parent company, the company said, adding the supervisory board would discuss the unaudited business results on 28 July.
Krka's shareholders will receive a record dividend of EUR 5 gross per share, up almost 18% from 2020, as the AGM backed the management's proposal to distribute EUR 156 million from last year's distributable profit of EUR 337.52.
Krka plans to end 2021 with sales of EUR 1.5 billion and a net profit of around EUR 265 million. Investments should total EUR 114 million.
"Business results in 2021 will depend on the spread of Covid-19 and related measures in individual countries, on global post-pandemic recovery and on exchange rate fluctuations in Krka's key currencies," the release says.
At the end of June, the Krka group employed 11,607 workers, while together with agency workers, the count reached 12,524.
STA, 21 May 2020 - Slovenia's pharma group Krka Group saw its net sales revenue increase by 22% year-on-year to EUR 462.9 million in the first quarter as the coronavirus pandemic pushed up the demand for its products. Net profit rose by 21% to EUR 85.2 million.
The unaudited interim report for the first quarter released by Krka on Thursday shows the operating profit rising by as much as of 85% year-on-year to EUR 133.9 million, and earnings before interest, taxes, depreciation and amortisation (EBITDA) increasing by 62% to EUR 162 million.
The group generated 95% of sales outside Slovenia, with East Europe, its biggest market, accounting for 33.2% of overall sales. The region also saw the highest sales growth in absolute terms, increasing by EUR 31 million to EUR 153.1 million, chiefly owing to growth in Russia and Ukraine.
In its second biggest market, Central Europe, Krka generated EUR 113.7 million or 24.6% of its overall sales, followed by South East Europe, at EUR 63.8 million (13.8%), and overseas markets, at EUR 13.5 million (2.9%).
Sales at home, at EUR 23.3 million, accounted for 5.1% of the overall sales. Prescription drugs accounted for EUR 10.8 million as their sales rose by 12% year-on-year.
The group allocated EUR 14.9 million for investment, of which EUR 9.8 million in the controlling company.
As of the end of March, the group had 11,622 regular employees, employing a total of 12,791 people along with agency workers. This is 21 more than at the end of 2019. This year the company plans to increase its headcount by 3%.
The core company, which employs 5,898, generated EUR 434.9 million in sales in January-March period, one third up year-on-year. Operating profit nearly doubled to EUR 126.2 million and EBITDA rose by 74% to EUR 147 million as net profit increased by 28% to EUR 65.4 million.
The company said the sales growth was partly affected by an increased demand for Krka products as a result of the novel coronavirus. "Towards the end of the first quarter, the demand slowed down and is currently at the planned and anticipated level."
Considering the unpredictability of the pandemic and its aftermath, the Krka management said it continued to carefully monitor the developments in the countries they operate in.
The group sales revenue for 2020 is projected at EUR 1.52 billion, of which 94% is to be generated in foreign markets. The profit target for the year is EUR 210 million, while EUR 134 million is to be allocated for investment this year.
STA, 5 February 2020 - Addressing the press on Wednesday amid continuing speculation about the plans of Novartis, representatives of the Swiss multinational's Slovenian subsidiary Lek said Novartis would continue a reform in Slovenia that included the transformation of production locations and more focus on innovative drugs along with generics.
"The changes that we feel the most are Novartis's ongoing portfolio changes. In this context I see Lek in Slovenia integrated to a greater extent in the innovative segment," Lek head Robert Ljoljo said.
"This does not mean that we're leaving generic products entirely ... but we'll definitely see a transformation of production locations and an additional increase in the number of innovative drugs produced," he added.
Lek started producing 10 innovative drugs last year, making for a total of 26. The development of generic pharmaceuticals is also continuing, with registration applications filed last year for 21, the development and research executive Uroš Urleb explained.
Novartis plans to continue with investment. Last year it expanded the development centre in Ljubljana and set up an automatised analysis lab, while this spring it expects to wrap up an investment into the development of biological medicinal products in Mengeš.
Commenting on the change of plans in Prevalje, where Lek built a new hall to then announce it was actually phasing out the production of antibiotics there, Lek management board member Raul Intriago Lombeida repeated this location would be part of Novartis's future global centre for technical operations.
As regards a potential sale of the newly built hall, Ljoljo said that talks with TAB, the Mežica-based maker of starter batteries for cars and industrial batteries, were still ongoing.
Meanwhile, Intriago Lombeida did not wish to comment directly on the visit of potential Chinese investors at the production unit for active ingredients in Mengeš. He said such visits by agency representatives, suppliers etc. were an everyday affair.
Lek's results in 2019 were also not discussed concretely, with Ljoljo announcing they would be presented in the annual report, presumably in August. He did say the trends were in line with those for Novartis, which increased net sales by 9% while seeing a decrease net profit by 7% to EUR 11.7 bn.
STA, 30 January 2020 - The group around the Novo Mesto-based drug maker Krka generated EUR 1.49 billion in sales revenue in 2019, or 12% more than in the year before, while net profit was up 39% to EUR 242 million, according to an estimate released by the management board on Thursday.
The group's operating profit was up by 18% to EUR 274 million, and pre-tax profit increased by 40% to EUR 283.7 million.
The core company generated EUR 1.39 billion in sales revenue, up 13% from 2018, and net profit more than doubled to EUR 248.1 million.
Last year, the Krka group generated EUR 481.2 million or 32.3% of total sales in East Europe, the largest market for Krka, with sales there increasing by 17% year-on-year. In Russia alone, sales were up by 13% to EUR 310.5 million.
Central Europe, comprising the Visegrad Group and the Baltic states, followed with EUR 339.6 million, or 22.8% of total Krka group sales. Sales there were up by 7% compared to the year before.
Sales to West Europe amounted to EUR 336 million or 22.6% of total sales, and were up by 17% compared to 2018. Germany, the Scandinavian countries, Spain, and Italy generated the strongest sales in the region.
With sales of EUR 191.3 million, South-East Europe represented a 12.8% share in total Krka group sales, and saw a 9% rise compared to the year before. Romania and Croatia were the largest markets, while the highest sales growth was recorded in Bulgaria and Serbia.
In Slovenia, sales were up by 4% to EUR 92.4 million, accounting for 6.2% of total sales. Product sales stood at EUR 52.9 million, while health resorts and tourist services yielded EUR 39.5 million.
In the overseas markets, the Krka group generated EUR 48.6 million in product sales, a 12% growth, which is 3.3% of total sales.
Commenting on the results, Krka chairman Jože Colarič noted that the group had posted its best sales result ever. Growth of sales was recorded in all regions and on the majority of markets, and sales were up in all groups of products and services, he added.
According to Colarič, the group plans to generate EUR 1.52 billion in sales and more than EUR 210 million in net profit this year. A total of EUR 134 million has been earmarked for investment in 2020, mostly in production and infrastructure.
Last year investments amounted to EUR 113 million, of which EUR 93 million was invested in the core company. Most of the funds went for modernisation of production and research, quality assurance and production and distribution centres.
In 2020, Krka plans to increase the workforce in Slovenia and abroad by a total of 3%, and is expected to have more than 12,300 employees at the end of the year, said Colarič.
The unaudited financial statements for 2019 for the group and core company will be published on 19 March, Krka said.
STA, 19 October 2019 - The Maribor-based pharma company Marifarm is gradually implementing its strategy of becoming a drug manufacturer instead of just providing drug packaging as it used to. So far, they have been manufacturing drugs for other pharmas, but Marifarm wants to enter the market with their own drugs.
The company went private to avoid bankruptcy in 2016. It was acquired by Arterium International, a company registered in Amsterdam, which invested over EUR 11 million in three years.
At the end of August, the company got new owners - the Aquer GMBH group, established in Vienna, while Arterium International remains Marifarm's strategic partner.
Marifarm administration adviser Viktor Gryban told the STA that this shift in ownership had been planned and did not change the pharma's long-term strategy of manufacturing own drugs.
The company's drugs have already been developed and are now waiting for approval from relevant authorities to enter the market - a procedure that could take between three and four years.
To follow this goal and boost its business results, Marifarm has started working for other pharmas in drug manufacturing.
The company has been so far without profit and the owners are not expecting it this year either. Last year, Marifarm generated EUR 1.7 million in revenue and over EUR 3 million in net loss.
Although still in the red, the company has been improving its results and boosting its promotion at international pharma events.
Gryban expects the company to generate almost EUR 4 million in income this year and climb out of the red next year due to possible new business contracts.
The EUR 11 million investment has gone into modernising equipment as well as hiring new employees. The company currently employs some 150 workers and is planning to raise this figure to 170 by the end of the year, according to its director Romana Fišer.
Marifarm's current production capacities are the highest ever and will continue to be expanded. The company cooperates with Slovenia's largest drug maker, Krka, as well as pharmas from Switzerland, Germany, Latvia, Ukraine and India.
STA, 1 October 2019 - Krka, the Novo Mesto-seated pharmaceuticals group, has launched a new research and development centre to nearly double its R&D, and control and analysis capacities.
"With the new facility, which has state-of-the-art equipment for laboratories, analysis and technology, we've almost doubled Krka's development as well as control and analysis capacities, thus significantly improving R&D, which is at the core of Krka's vertically integrated business model," said Aleš Rotar, R&D director.
The Research and Control Centre 4 (RKC 4) is a EUR 55.6 million investment located on the outskirts of Novo Mesto, and is connected with a bridge to RKC 3 and then on to RKC 1.
The eight-storey building with 18,000 square metres of offices accommodates new control and analysis labs and R&D areas, CEO Jože Colarič said before Tuesday's inauguration.
Rotar stressed the centre was especially important for pilot development of solid pharmaceuticals as a key component in the development of new products.
The company believes RKC 4 will enable it to carry out advanced R&D tests at the very early laboratory stage and define the key features of a product in early stages.
At today's inauguration ceremony, Prime Minister Marjan Šarec labelled Krka as one of Slovenia's flagship companies, praising the company for its exports trends, development strategies, independence and its role in the local community.
He considers the investment an important milestone and an opportunity for development.
In the first half of 2019, the group posted a net profit of EUR 139.9 million, up 37% from the same period in 2018, on EUR 761.8 million sales revenue, up 12%.
The plan for this year is to finish with EUR 1.38 billion in sales revenue and EUR 172 million in net profit.
The group allocates 10% of its revenue for R&D and new technologies, and has more than 170 development projects for new products are under way.
It generates 29% of its sales with the new medicines which they have started selling over the past five years.
