Polpharma is now in exclusive talks to take over drug maker Polfa Warszawa Shutterstock

Polish pharmaceutical firm Polpharma has gained exclusive talks with state-owned Polski Holding Farmaceutyczny (PHF) for the acquisition of drug maker Polfa Warszawa, after it outbid four other potential buyers, Polish media reported last week.

Both Polpharma and Iceland-based drug maker Actavis were short-listed for the privatization process on August 31. Polpharma was selected after submitting the highest bid. ZF Adamed Pharma, Ukraine’s Arterium Korporatsiya and Chinese firm Harbin Pharmaceutical Group were also all originally in the running to take over the Warsaw-based company.

“We intend to conclude the transaction within a few weeks,” PHF CEO Artur Woźniak was quoted by Polish daily Parkiet as saying.

Mr Wozniak told the daily that there were still a few minor details to iron out in the prospective zł.800 million deal, with Polpharma now set to negotiate a social package with the trade unions, a process which could take several weeks.

The firm’s privatization had originally been scheduled for 2010 but was postponed after a potential zł.500 million deal was turned down.

Polpharma will become the market leader in Poland in terms of revenue and market share if it completes the acquisition of Polfa Warszawa, a firm which had a net profit of zł.44.4 million last year and a net profit of zł.13.6 million in H1 2011.

Polpharma is continuing its expansion plans after its September 20 acquisition of a majority stake in Chimpharm, one of the largest drug producers in Kazakhstan.

This year Polpharma also bought a majority stake in Turkish firm Cenovapharma.

“This will enable us not only to exist on the very promising Turkish market, but also open up its markets in the Middle East, Africa and the Caspian region,” the firm said in a statement.