The pharmaceutical company Reig Jofre will open a subsidiary in the Czech Republic this year to cover this market and that of Slovakia, and is studying to open another later in Hungary, to follow in the footsteps of its landing in Poland and grow in Europe from the East Ignasi Biosca, CEO of the Catalan company, pointed out that “after a record 2023”, in which sales reached 316 million euros (17% more) and operating profit or ebitda at 35 million (with an increase of 15%), “we want to focus on growing profitability”.
The company took a big leap forward with investments in the antibiotic factory in Toledo and the new injectables factory in Sant Joan Despí (Baix Llobregat), which raised the debt to 69 million euros in 2021. It has now been reduced to 1.6 times the ebitda “and we want to take advantage of the cash generation and the financial capacity to look for opportunities to grow”.
The company landed in Poland in 2021, in the midst of a pandemic, and in just two years has placed its sales at 13 million euros, with 35 people on staff, from its “specialty pharmacy” division, which includes osteoarticular and dermatological products. The company has already introduced its two other divisions in the country, pharmaceutical technologies and health self-care. “These are markets that are at a high point of growth, as we were in Spain a few years ago, and not so much in terms of price control”, he pointed out.
The other axis of pharmaceutical growth will be the rotation of the products it manufactures for third parties in its plants, incorporating more complex drugs with more added value.
In this strategy, Biosca framed its investment in Leanbio, which will reach 6.8 million euros between debt and equity, so that the firm can set up a new production plant in Sant Quirze del Vallès that would be operational in 2025.
Reig Jofre already controls 10% of Leanbio’s capital, a percentage that will initially increase to 24% and that could go up until it is integrated into the pharmaceutical group. According to Biosca, this is a “strategic investment”, as it will allow to generate synergies with the new Reig Jofre plant: the active principle could be produced at Leanbio, and the final medicine at the Sant Joan Despí plant.
The company, which held its shareholders’ meeting in Barcelona yesterday, highlighted the success of its internationalization: with a presence in more than 70 countries, Spain already accounts for only 45% of its sales, while 43 % come from the rest of Europe, and 12% from other countries in the world, where it grew by 47% driven by Asia and the sale of injectable products in these markets.
Reig Jofre has as its first shareholder the Reig family, with 63% of the share capital. Yesterday, the shareholders’ meeting approved the payment of a flexible dividend for an amount of 3.2 million euros, which represents a pay out of 35% of the net result.
