The goal of the entry of US investment fund Warburg Pincus into Slovak pharmaceutical company Slovakofarma is to increase competitiveness and cut costs in the area of logistics, research and development. On Monday in Vienna, both companies signed an agreement securing the majority of the financial investor in Slovakofarma. Warburg Pincus is also the majority holder in Czech company Leciva Praha.

Pavel Hraska, Slovakofarma spokesman told SITA that based on an economic analysis, after Slovakia’s accession into the European Union, only the top five companies considering turnover will be able to compete on the market. „Using synergy between Slovakofarma and Leciva, we should reach an annual turnover of between USD 240 to 250 million,“ added Mr. Hraska.

Slovakofarma was transformed into a joined stock company in 1992. After privatization two years later, Slovak company SL Pharma Holding GmbH, with its seat in Vienna, became the majority shareholder. Slovakofarma is the largest, oldest, and most important pharmaceutical company in Slovakia. It sells about half of its output in the Czech Republic and exports its products to another 59 countries.

Warburg Pincus is a leading investment fund functioning worldwide. Since 1971 the firm invested more than USD 12 billion in 450 companies in 29 countries.