Merger Of Almirall And Prodesfarma In Spain

Two Spanish pharmaceutical companies, Almirall and Prodesfarma, arejoining forces to form the "first Spanish multinational of the sector." A new company, AP Farma, has been set up to manage the merger.

The two firms say that the formation of the new company will result in superior resources to pursue R&D, and that there are no plans to implement staff reductions as a result of the merger; on the contrary, it is intended to combine the forces of two companies already distinguished by their own ranges of drugs, which are distributed throughout the world.

Domestic turnover of both groups in Spain in 1997 will reach 53 billion pesetas ($390.9 million), and international revenues are expected to be 76 billion pesetas. The new firm will spend over 5.5 billion pesetas on R&D in 1997, with total group investment of 2.7 billion pesetas. The combined workforce is made up of 1,800 staff, 300 of whom work in R&D activities. Production of pharmaceuticals for the Spanish market will be 80 million units.