The government holds 19.25% of the shares in Bosnalijek, and it is reportedly this element that is up for sale. US generics’ firm Alvogen has been talked about so far as the most likely candidate for the purchase but there are rumours that a further five potential bidders have emerged. Although there is no official confirmation, it is claimed that they include companies from Croatia, Libya, Poland, Slovenia and United Arab Emirates. Existing shareholders in the firm are the International Finance Corporation, the World Bank's private equity arm, as well as employees, investment funds and the Libyan government, which in 2008 swapped a Euros 9.7 million government debt for an 8.7% stake.

Award-winning company

Bosnalijek is the largest pharmaceutical company in Bosnia and Herzegovina. In 2008 it was awarded first prize as the most ‘Socially responsible company in Bosnia and Herzegovina’ for the way the company integrates care for society and the environment into its activities.

Its business strategy is to manufacture a wide and competitive range of drugs with a high market potential. Thanks to this, Bosnalijek has become the leader on the domestic market, while almost half of its total income comes from export markets.

Bosnalijek's orientation towards international business has resulted in an average growth in exports of approximately 50% a year over the last five years. In August 2010, Bosnalijek said its first-half net profit rose by 2% to Euros 1.9 million on revenue down 2%. It expects revenue and profit to rise 3% this year.

Privately-owned generics company Alvogen has been operating for 120 years. It has a manufacturing capacity of eight billion tablets and capsules in its US base. Already operating multinationally, Alvogen hopes to become a top ten global generics player by 2015. "We need more people to drive our expansion and over 200 new jobs will be created. Our aim is to more than double Bosnalijek's manufacturing capacity and bring in new high quality medicines," said Alvogen Executive Chairman Mr Robert Wessman.

A privatisation official said the government would discuss conditions for the sale only after talks were complete. The Muslim-Croat federation government said in June 2010 it would not rush with a new auction of its stake in Bosnalijek after previously failing to find an acceptable bid.

References

Bosnalijek. Bosnalijek in short. Leading pharmaceutical company in Bosnia and Herzegovina [monograph on Internet] Bosnia, Bosnalijek; c2008 [cited 28 September 2010]

Bosnalijek Quarterly Reports. Short report on operations for the first quarter of 2010 [monograph on Internet] Bosnia, Bosnalijek; c2008 [cited 28 September 2010]

Alvogen. About Us. [monograph on Internet] USA, Alvogen; c2010 [cited 28 September 2010]