Shareholders of pharmaceutical producer Biofarm Bucharest (BIO) has approved the share capital increase by 11.73 million lei (3.17 million euros), through the incorporation of the 2007 net profit and distribution of free shares. Consequently, the company’s share capital will rise to 109.48 million lei (30 million euros). Biofarm is the best capitalized pharmaceutical company of those listed on the Stock Exchange.
Biofarm implemented in the past years a policy of capitalization of its profits, achieving capital increases with contributions in cash from the shareholders. Since the stock floating on the Bourse, at the end of 2005, up to present, the pharmaceuticals producer has made three operations of this kind, boosting its capital almost three-fold.
In this period, the company value on the Bourse advanced by approximately 50 percent, from 205 million to 303 million lei, whereas the net profit increased by 15 percent, from 11.7 million to 13.5 million lei.
The approved budget for this year provides a net profit of 14.5 million lei, 7.5 percent higher than last year and a turnover of 69.8 million lei, a rise by 12 percent.
The company is controlled by three Financial Investment Companies (SIFs), which hold an overall 40 percent of Biofarm share capital. Main shareholder is SIF Oltenia, with a participation of 16.4 percent, followed by SIF Moldova and SIF Banat-Crisana. Other significant shareholders are businessman Dumitru Tudor and American Julius Baer International Equity Fund.
Biofarm shares have seen a steep decline since this year-start, of 51 percent.