Drug manufacturer InnoGenerics acquired at the last minute

Two days after the production of medicines was halted, there will be a restart for the bankrupt medicine manufacturer InnoGenerics in Leiden. InnoGenerics will be taken over by Ofichem Groep from Ter Apel, a Dutch supplier of raw materials for medicines. The receiver reached an agreement on this on Thursday evening. The Ministry of Health, Welfare and Sport supports the takeover with a contribution to the estate. The bankruptcy judge also agrees to this takeover, in the interest of creditors.

The Ofichem Group

Ofichem Group calls the takeover a ‘Restart Light’. Not all production lines can be continued at the start. The CEO of Ofichem Weite Oldenziel says about the takeover: “We have been planning to produce generic medicines ourselves for several years. However, due to the great price pressure, it is not easy to enter this market. The fact that it is now successful is because we see opportunities to integrate the production of InnoGenerics with our other activities. I believe that the production of medicines in Europe must be strengthened. And I think that this can also be done through more chain integration. With Ofichem we can achieve this”.

MEDICINE PRODUCTION IN EUROPE MUST BE STRENGTHENED

— OFICHEM GROUP

The curator and the Ministry of Health, Welfare and Sport

Curator Bentfort van Valkenburg calls the takeover a close call. Ofichem was the first company to show serious interest. The fact that the deal was concluded is exceptional. Bentfort van Valkenburg: “Gradually, we gained more insight into the cost structure of InnoGenerics. Other parties, such as the customers and the lessor of the building, also showed willingness to contribute to a solution.” Bentfort van Valkenburg: “All parties realized that not only business interests, but also social interests play a role in this bankruptcy. This allowed us to keep the discussion 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 realized. The ministry closely monitored this process and in a number of cases also spoke with potential restarting parties. The minister 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 that InnoGenerics has made over the past three years to preserve the last large generic pill factory for our country have not been in vain. Wiarda: “Of course I regret the course of events in the run-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 receiver and Ofichem are not currently making any statements about the acquisition amounts, partly because it is not yet clear exactly what part of the stocks will be acquired. The receiver has received permission from the bankruptcy judge for the financial conditions of this restart. In the restart, the assets of InnoGenerics will be sold to Ofichem. The receiver will use the proceeds of this sale to repay InnoGenerics’ creditors as much as possible and thus settle the bankruptcy.

Source: OFICHEM GROUP