Bioton, a Polish producer of human insulin and other pharmaceuticals, announced that it would get a zł.171-million injection of funds. Polish tycoon Ryszard Krauze, the main shareholder in Bioton, will buy new shares worth around zł.21 million while his firm Prokom Investments will purchase stock worth around zł.150 million.

This was good news for the firm’s investors, who haven’t had much to cheer about in recent years. Bioton is one of a few human insulin producers in the world, but its international expansion plans have encountered difficulties. Also, a deal in which competitor Polpharma was to acquire a third of Bioton fell through in January.

An extraordinary general shareholders meeting was scheduled for this Monday. Among other things on the agenda, shareholders were expected to agree on an increase of the company’s share capital. As the company said in a statement, “a part of the funds from the issue [will be used] to cover expenses incurred on account of the foreign operation restructuring in order to enhance the profitability thereof.”

From its historical peak of zł.7.24 in May 2006, the firm’s stock has been hovered below zł.1 since March 2008. The news of the cash infusion sent the stock up from zł.0.22 to zł.0.27, and it finished the week up at zł.0.29. (Reuters)