Slovenian drugmaker Krka targets small acquisition in China (updated)

Krka dd Novo Mesto

06/07/2017 14:28

(Updates with takeover plan, quote, details) 
    By Marja Novak 
    LJUBLJANA, July 6 (Reuters) - Slovenian generic drugs 
producer Krka  KRKG.LJ  said it was in talks to buy a small 
Chinese pharmaceutical company as it announced a 31 percent rise 
in first-half profit on Thursday. 
    Krka, which is Slovenia's largest listed company, has set a 
target to increase the volume of its sales by at least 5 percent 
annually on average in the years to 2020. 
    It did not disclose the name of its acquisition target but 
said it hoped to acquire at least a 51 percent stake in the 
Chinese company which has sales of less than 10 million euros 
($11 million) a year.  
    "Due diligence is in the final stages and final talks will 
take place in July. If they will be successful the transaction 
will be completed by the end of summer," Krka said, adding it 
will focus on other takeover targets if talks fail. 
    Krka reported a net profit of 91.7 million euros for the 
first half of the year, according to an initial estimate with 
final figures due to be released on July 27. 
    It said sales rose by 8.5 percent to 655 million euros with 
sales in Eastern Europe, Krka's largest market, up by 22 
percent.   
 
($1 = 0.8782 euros) 
 
 (Reporting By Marja Novak; Editing by Keith Weir and Susan 
Fenton) 
 ((Marja.Novak@thomsonreuters.com; +386-1-5058805, Reuters 
Messaging: marja.novak.thomsonreuters.com@reuters.net)) 
 
Keywords: KRKA RESULTS/