Estonians buy Latvian wholesaler

  • 2001-08-09
  • BNS
RIGA - Magnum Medical, a Latvian subsidiary of Estonia's pharmaceutical wholesale company Magnum, has bought a 100 percent stake in Latvia's Versija Medfarm wholesaler.

Versija Medfarm and newly established Versija Intersource's Board Chairman Sols Bukingholts told the Latvian business daily Dienas Bizness on Aug. 3 that the essence of the deal is to merge both companies. The price of the deal is acceptable to both parties but is not being announced.

Meanwhile, Dmitrijs Juskovecs, Magnum Medical's director general in Latvia, said that the aim of the deal was to "combine the experience and power of both companies in order to both merge clientele and offer a wider range of products."

The Magnum Medical/Versija Medfarm agreement allows Magnum Medical to acquire the rights to distribute major U.S. company pharmaceuticals, which have already been represented in Latvia for the past 10 years, consisting of 45 various medicines and 20 varieties of food additives.

Magnum Medical is a pharmaceutical wholesaling leader in Estonia commanding 40 percent of the market. The company held 14th place among competitors in Latvia in 2000 with a turnover of 2.5 million lats ($3.95 million). In the first six months of this year the company has shown a 50 percent increase in turnover, results achieved even though it does not have its own chain of drug stores. This year the company plans a turnover of 3.5 million lats, hoping to reach at least 4 million lats in 2002.

Versija Medfarm was also one of the top 20 medical wholesalers in Latvia last year on a turnover of close to 2 million lats. Market share is expected to reach 5 percent after merging this year, said Juskovecs.

Versija Medfarm was previously owned by InterSource International Inc. and SIA Versija.