Drug manufacturer InnoGenerics acquired.
Drug manufacturer InnoGenerics acquired at the last moment.
Two days after the production of medicines was stopped, there is a restart for the bankrupt medicine manufacturer InnoGenerics seated in Leiden. InnoGenerics is taken over by Ofichem Group from Ter Apel, a Dutch supplier of raw materials for medicines. The curator reached agreement on this on Thursday evening. The Ministry of Health, Welfare and Sport supports the takeover with a contribution. In the interests of creditors, the supervisory judge also agrees with this takeover.
The Ofichem Group
The Ofichem Group calls the takeover a 'Restart Light'. Not all production lines can be continued at the beginning. The CEO of Ofichem Weite Oldenziel says about the acquisition: “We have been planning for several years to produce generic medicines ourselves. However, due to the great pressure on prices, it is not easy to enter this market. The fact that we succeed now is because we see opportunities to integrate the production of InnoGenerics with our other activities. I think that medicine production in Europe should be strengthened. And I think that this can also be done through more chain integration. With Ofichem we can realize that”.
Medicine production in Europe must be strengthened.
The curator and the Ministry of VWS
Curator Bentfort van Valkenburg calls the takeover a close call. Ofichem was the first company to show serious interest. The fact that the deal has come about is exceptional. Bentfort van Valkenburg: “Gradually we gained more insight into the cost structure of InnoGenerics. Other parties, such as the buyers and the owner of the property, also showed a willingness to contribute to a solution.” Bentfort van Valkenburg: “All parties realized that not only business interests, but also public interests play a role in this bankruptcy. This allowed us to keep the conversation and the search for a solution going until the very last moment.”
Immediately after the bankruptcy, the Ministry of Health, Welfare and Sport issued a guarantee to keep production going until a possible restart was realised. The ministry has closely monitored this process and also spoke with potential restarting parties. The minister has agreed to a modest contribution to the bankrupt estate in order to keep the factory's medicine production going.
InnoGenerics
Lucas Wiarda, director of InnoGenerics, is pleased that the efforts InnoGenerics has made over the past three years to maintain the last large generic pill factory for our country have not been lost. Wiarda: “Of course I regret the course of events leading up to our bankruptcy and the consequences for many of those involved. But relief prevails. This factory is of great importance for the security of supply of generic medicines in the Netherlands. I will continue to work to ensure sustainable medicine production close to home.”
The curator and Ofichem are currently not making any statements about the acquisition amounts, partly because it is not yet exactly clear which part of the stocks will be acquired. The bankruptcy trustee has obtained permission from the supervisory judge for the financial conditions of this restart. In the relaunch, the assets of InnoGenerics will be sold to Ofichem. The curator will use this to repay InnoGenerics' creditors as much as possible and thereby settle the bankruptcy.