With a significant capital increase for its size and a business plan to leverage the manufacturing capacity of the pharmaceutical industry, Lavipharm is trying to turn the page and significantly improve its financial performance. Thus, the company increases the authorized capital by up to 58 million euros in cash with a pre-emptive right in favor of the old shareholders. A notice of the increase is expected to be submitted to the Capital Market Commission for approval in the near future. AMK will strengthen its equity capital by removing the reasons why its shares remain in the Watch category for a long time, while at the same time opening up access to new financial instruments, the company’s management believes. At the same time, if the development of the company is successful, distribution and dividends are possible, sources in management explain.

Based on the same information, it has recently been established that both institutional portfolios and individuals are interested in participating in the upcoming AMK. Major shareholders, i.e. Lavid’s family, will contribute $34 million and at least $1 million in cash if there are unallocated rights. Telemachos Lavidas, son of the late Thanasis Lavidas, led the effort to reorganize Lavifarm, which has a history of 110 years. He is accompanied by Panagiotis Giannulea, Chief Operating Officer and Regional Manager of Lavipharm, as well as a member of the Board of Directors. SFEE, and Vassilis Baloumi, group financial director, and the board of directors includes such members as Mr. M. Tanes, D. Christopoulos and S. Ephraimoglou. The development plan is based on concrete preparations: for example, the 34 million funds raised will be used to purchase the antihypertensive clonidine patch, which has been on sale in Italy for several years. The acquisition concerns international distribution rights, excluding the United States. The remaining 24 million will be directed to the investment plan for 2022-2026. Company sources explain that with the addition of this transdermal clonidine system, Lavipharm will become one of the few companies in Europe and the only one in Greece to have three transdermal products (clonidine, fentanyl and nitroglycerin). the Italian market, where annual sales are around 7 million and EBITDA exceeds 3 million euros.

“The product has a stable exchange rate and brings money, without any promotional activities”, and “due to the transfer of the production process to the facilities of Lavipharm, costs will be reduced, and in combination with the development of promotional activities, the company’s financial indicators will increase significantly. “, – add the same sources. It is worth noting that the evaluation of the acquisition of this transdermal drug included data only for the Italian market, and not for the rest, where it can develop further. The investment plan also includes the modernization of factory facilities, mechanical equipment, modern R&D and Test Lab According to the business plan, sales before returns and discounts are estimated at 94 million in 2026 with an EBITDA margin of over 19%, respectively in 2021 the respective figures were 45.8 million and 6.2 million respectively.

The company was listed on AA in 1995. It employs about 270 scientifically trained staff and is expected to hire 130 more by 2026. It produces more than 50 million plasters a year and last year its exports reached about 30% of turnover, in terms of increasing the share of its own production.