Hungarian pharma group Gedeon Richter’s activity in Romania was suspended for having breached distribution practices, Profit.ro reported.

Romanian authorities can lift this sanction only after they approve the corrective measures the company needs to propose.

The sanction, which removed the Hungarian’s group license to operate its Romanian company, endangers the jobs of 500 people who work for the local subsidiary Pharmafarm, according to Richter spokesperson Zsuzsa Beke.

There are currently no details about the rules the Hungarian group allegedly breached. The group saw its sales in Romania surge by 24% year-on-year, to some EUR 242 million, in 2017. It operates a distribution division, Pharmafarm, and a retail chain, Gedeon Richter Farmacia.

Richter shares dropped 3.4% on the Budapest Stock Exchange after this decision.

editor@romania-insider.com