GlaxoSmithKline to close down large Romanian drug factory

British drug maker GlaxoSmithKline GSK recently announced its plans to close down the Europharm factory it owns in Brasov, Romania, because of production overcapacity at a group level. The decision came following a wave of expired patents which led to an excess of capacity for solid oral drugs,” said Pascal Prigent, general manager of GSK Romania.

The factory in Brasov is the second largest drug producer in Romania, and had a turnover of EUR 104 million last year, and a profit of EUR 11 million. Most of its production goes to export, some 60 percent. This is the first drug factory in Romania which is closing down.

The drug producer is currently looking for a buyer for this factory in the next six months, while GSK will move the production at this factory to other factories of the group, until 2015 the latest.

Source: romania-insider.com