Slovenia's Krka sees 2018 profit up, forms China joint venture (updated)

Krka dd Novo Mesto

16/11/2017 10:47

* 9-mth net profit 110.1 mln euros, up from 80.3 million 
    * Sales rise to 928.3 mln from 852.4 mln 
    * Expects 2017 net of 140 mln, 153 mln in 2018 
 
 (Recasts with forecasts, China joint venture) 
    LJUBLJANA, Nov 16 (Reuters) - Generic drugs producer Krka 
 KRKG.LJ  on Thursday forecast an rebound in net profit this 
year and next and announced a Chinese joint venture that it 
expects to bolster sales. 
    Slovenia's biggest company by market size said it expects a 
profit of 140 million euros this year, up from 108.4 million in 
2016. It forecast a profit of 153 million for 2018. 
    Krka has formed a 60-40 joint venture in China with Ningbo 
Menovo Pharmaceutical  603538.SS , the company said, which will 
"be focused on development, production and marketing of 
(pharmaceutical) products ... with significant sales results 
expected in about three years". 
    The joint venture will have a starting capital of 30 million 
euros and start operating at the start of 2018.  
    Krka reported a group net profit of 110.1 million euros for 
the first nine months of 2017, up from 80.3 million. 
    Its nine-month sales rose to 928.3 million euros from 852.4 
million buoyed by a 21 percent rise in sales in Russia. 
    It forecast annual sales of 1.24 million euros, rising to 
1.3 billion in 2018. 
    Krka said sales are expected to rise by at least 5 percent 
per year from 2018 to 2022, adding it will mainly focus on 
Europe, China and Central Asia. 
    Its nine-month sales rose to 928.3 million euros from 852.4 
million. 
    ($1 = 0.8488 euros) 
 
 (Reporting by Marja Novak; editing by Mark Potter and Jason 
Neely) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805, Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: KRKA RESULTS/