Sale of Antibiotice enters the finishing straight

The privatisation of drug maker Antibiotice Iasi promises to be one of the biggest deals made by the state this year. On Monday, the AVAS (State Assets Resolution Authority) announced that it was expecting letters of intent for the company by November 1, 2006. Companies already involved in pharmaceutical distribution and retail, such as the pharmaceutical groups Montero and Polisano have already showed an interest in Antibiotice. Phonix Laboratorium from Hungary, Ozone Laboratories and Canadian company Acic Pharmaceuticals have also expressed an interest, according to information circulated on the market of late. Antibiotice representatives could not be contacted for further details. The AVAS has recently announced it had received 15 letters of intent for the privatisation of Antibiotice Iasi. The AVAS holds a 53% majority stake of the producer. Other significant shareholders include investment fund Broadhurst and SIF Oltenia. Antibiotice Iasi is the last producer of pharmaceutical products in which the state holds a majority stake, but it is also a last opportunity for foreign players to enter the local market, since the already sizeable competition makes it difficult for organic growth to occur.