Concorde Capital Completes Darnitsa Pharmaceuticals Private Placement

KYIV, Ukraine--()--Darnitsa Pharmaceuticals, one of Ukraines largest pharmaceutical producers, through its holding company Nord Star Pharmashare (Denmark) has successfully placed a 10% equity stake among foreign investors for USD 48 m, giving Darnitsa a total MCap of USD 560 m.

Shares of Nord Star Pharmashare were sold in the form of global depositary receipts (GDR) issued by The Bank of New York and began trading on the Frankfurt stock exchange on October 5. The price per GDR corresponding to one share was USD 8.7 at the placement. In all, 5 555 550 depositary receipts were placed on the exchange.

Concorde Capital acted as sole financial advisor and book runner of the placement.

Darnitsa is the first Ukrainian pharmaceutical company to list on an international exchange.

Concorde Capital CEO Igor Mazepa had this to say about the deal, the strong interest the placement received from foreign investors, led the management to increase its placement stake to 20%, which is likely to be purchased by strategic investors, and will have a positive impact on Darnitsas development strategy.

The company intends to use the placement proceeds to enlarge its production and complete its transition to full compliance with GMP (Global Manufacturing Practice). According to Aleksey Troinikov, Head of Darnitsas Auditing Committee, Darnitsas strategic plans include launching an asthma drug production unit by the end of 2009, as well as the construction and launch of biotechnological medicine production (R-DNA insulin, human growth hormone, and anticancer vaccines) by late 2010.

For Editors

Darnitsa Pharmaceuticals was the first company in Ukraine to launch production in compliance with GMP and ISO 9001:2000. The company has been operating for over 70 years in the domestic market, and over the last few years it has been the leader of Ukrainian pharmaceutical industry. Darnitsa is the largest pharmaceutical company in terms of output with over a 26% share of total pharmaceutical production in Ukraine.

Concorde Capital (www.concorde.com.ua) is a full service investment bank operating on the Ukrainian, Russian and CIS financial markets. In 2007, Concorde Capitals analytical team was named the Top Analytical Team covering Ukraine by Thomson Extels Pan European Survey. Concordes role in the sale of Elektron Bank to Austrias Volksbank International earned the company the Adam Smith Institutes Best Ukrainian M&A deal of 2007 award. Concorde Capital has attracted over USD 1 bln for leading Ukrainian companies over the last two years.

Contacts

Concorde Capital
Nick Piazza
Corporate Relations
Tel.: +380 44 391 5577
Mob.: +380 96 598 1298
E-mail: np@concorde.com.ua
or
Darnitsa Pharmaceuticals
Yuriy Chertkov
Deputy CEO
Marketing Director
Tel. +380 44 567 8692
E-mail: chertkov@darnitsa.kiev.ua

Contacts

Concorde Capital
Nick Piazza
Corporate Relations
Tel.: +380 44 391 5577
Mob.: +380 96 598 1298
E-mail: np@concorde.com.ua
or
Darnitsa Pharmaceuticals
Yuriy Chertkov
Deputy CEO
Marketing Director
Tel. +380 44 567 8692
E-mail: chertkov@darnitsa.kiev.ua