Russia’s Pharmsynthez is making plans to purchase European pharmaceutical companies. The company was expected to make the announcement as to the first transaction before the end of the year, according to the chairman of Pharmsynthez’s board Mr. Dmitry Genkin.

Stopping short of revealing the name of the target in an interview with Russia Today, Mr. Genkin noted that it will be a good, strong company that is growing fast and offers bright prospects for the future. The target company, of course, is located on the territory of the European Union. 

In general, Pharmsynthez is looking at acquiring enterprises in the United States, Israel, and the European Union. Special preference is extended to companies that produce biopharmaceuticals.

On November 24, Pharmsynthez had its initial public offering on MICEX (RII sector). The Russian manufacturer of pharmaceuticals placed 22 million newly-issued shares that represent 30 percent of the charter capital. The price per share was RUR 24. Altogether, Pharmsynthez was able to raise RUR 528 million. The funds acquired as a result of the placement will be utilized for financing the investment program of the company. The company plans to commit significant capital outlays for building a pharmaceuticals plant in the Leningrad region, for conducting clinical product-testing in Europe for supplying its production to the E.U. market, as well as for the acquisition of manufacturing and pharmaceutical experimental enterprises outside of Russia.  

The ambitious program of Pharmsynthez would allow the Russian manufacturer to increase sales revenues five times by the year 2015, from RUR 271 million to RUR 1.4 billion. In 2016, the company intends to increase its capitalization to around USD 500 million in order to realize its capital investment agenda.

Before the initial public offering, 75 percent of Pharmsynthez was owned by Amber Trust, an international fund controlled by the U.S.-based Firebird Management and the Danish Danske Capital. The fund was organized to facilitate investment in Russia and the Baltic states. The remaining 25 percent of the company were owned by Mr. Genkin.