Romania's Antibiotice announces EUR 70 million R&D and critical drug production center

Romanian pharmaceutical company Antibiotice (BVB: ATB) plans to invest RON 376 million (approximately EUR 70 million) in a new research and development center focused on the production of critical medicines, the company announced on July 24.

The project, to be submitted for funding under the EU Health Program, will be presented for shareholder approval at an extraordinary general meeting on August 26.

Following the announcement, shares in Antibiotice rose by 6.7%, pushing its market capitalization to RON 1.76 billion (EUR 350 million), according to data from the Bucharest Stock Exchange (BVB).

In the general shareholder meeting agenda, the company stated its commitment to cover both eligible and ineligible project costs until EU reimbursement is secured.

"Antibiotice SA undertakes to have the financial capacity to ensure its own contribution under the conditions of subsequent reimbursement," the statement read.

The company also pledged to maintain the investment and cover operating and maintenance costs for at least five years following completion, as required under EU regulations.

The new center will support innovation and local resilience in the production of critical pharmaceuticals, amid broader European efforts to reduce dependency on external suppliers for essential medicines.

Antibiotice Iaşi reported revenues of RON 693 million (EUR 140 million) in 2024, an 8% increase from the previous year. Net profit rose 23% to RON 99 million (approximately EUR 20 million), while international sales of finished products and nystatin reached RON 253 million (roughly EUR 50 million), up 16%.

The Ministry of Health remains the majority shareholder, holding a 53% stake, while Infinity Capital Investments holds 13%, according to BVB data.

(Photo: antibiotice.ro)