Enterprise Investors invests in Polish pharmacy chain
Warsaw, 14 September 2000 — Polish Enterprise Fund managed by Enterprise Investors – the leading private equity firm in Poland and Central and Eastern Europe – has recently announced its investment of $1 million in a start-up pharmacy chain, Apteki Polskie. Over the next three years EI plans to invest up to $10 million in the project, which aims to consolidate the pharmaceutical retail market in Poland.
Enterprise Investors has significant experience in investments in the healthcare sector. Funds managed by Enterprise Investors are the majority shareholder of the leading Polish pharmaceutical producer Polfa Kutno, and are also shareholders in two leading Polish pharmaceutical distribution companies – PGF and Pharmag. Two months ago EI announced its investment in Medycyna Rodzinna, a chain of private clinics. To date, EI has invested and committed a total of $37 million in pharmaceutical and healthcare companies.
The Polish pharmacy market is very dispersed, although larger groups of pharmacies remain as survivors of the state-owned Cefarm. The margin limits imposed on the sale of drugs and the consolidation process observed in the distribution of pharmaceuticals exert a growing economic pressure on individual pharmacies in Poland. There is increasing interest from international investors in the sector.
The task of Apteki Polskie is to consolidate the pharmaceutical retail market in Poland through financing existing entities that are interested in cooperation or franchising, and to create a national network of customer-friendly and economically sound pharmacies. The management team of Apteki Polskie has a combined total of over 20 years’ experience in pharmaceutical retail and distribution.
“The company created by EI provides a chance for Polish pharmacies to take part in the inevitable transformations on the market,” said Ryszard Wojtkowski, a partner at Enterprise Investors who is responsible for investments in the pharmaceutical sector. “Enterprise Investors has succeeded in getting the cooperation of the management team whose enthusiasm, education and unique business experience create the potential for a successful project.”
“We want Apteki Polskie to be perceived by the pharmacy community as a chance to propagate the best standards of the profession, fight unfair competition, work out a strong negotiating position with distributors, and create the opportunity for each pharmacy owner to grow their business,” said Artur Djagarov, president of the board of Apteki Polskie.
Enterprise Investors has been active in Poland and the CEE region since 1990. The funds managed by Enterprise Investors – the Polish Enterprise Fund, Polish Private Equity Funds I & II, and the Polish-American Enterprise Fund – have invested over $550 million in more than 70 companies across all economic sectors. Enterprise Investors has announced the first closing of its new $300 million fund, Polish Enterprise Fund IV, which will invest in Poland and in other CEE countries. Up to 25% of the PEF IV’s capital will be invested in the pharmaceutical and healthcare sectors.