Lavipharm continues to strengthen its position in the domestic and international pharmaceutical markets, combining the acquisition of established products with the use of its manufacturing facilities and the development of new formulations. A major milestone in this strategy is the acquisition of the rights to DUROGESIC® in 24 markets, a deal that opens up new prospects for sales growth and an expansion of the Group’s export activity.
Sales of the product in France began on 30 September 2026, marking the first step in capitalising on the acquisition. A full rollout across the markets covered by the deal is expected during 2027. The transfer of production to Greece, planned for autumn 2027, is also expected to be crucial to the investment’s financial performance, significantly boosting the gross profit margin from 2028.
At the same time, the company’s strategy rests on two complementary pillars: acquiring existing pharmaceutical products with international potential and developing new formulations through its Research and Development department.
Increased production capacity, combined with experience in commercialising products and partnerships with international pharmaceutical companies, provides a platform for further expansion of its activities.
In the following interview, Vasilis Baloumis, Lavipharm’s Chief Financial Officer, discusses the significance of the DUROGESIC® acquisition, the outlook for financial growth, the Group’s funding strategy and new investment opportunities under consideration by management.
Lavipharm began selling DUROGESIC® in France on 30 September 2026, following approval of the transfer of the marketing authorisation. Why was France chosen as the first market, and what does the launch mean for the product’s commercial and financial prospects? What is the timetable for entering the other 23 markets?
As we told investors when the acquisition was completed, commercialising DUROGESIC® in the 24 markets for which we acquired the relevant rights required the transfer of the marketing authorisation in each country. The procedures and the time needed to complete them vary according to the regulatory framework in each market. We also took into account commercial interest and the priorities we had set for the product’s rollout.
France was the first market to begin sales, on 30 September 2026, as approval of the marketing authorisation transfer was completed more quickly there. The launch marks the first step in Lavipharm’s commercialisation of the product and the gradual expansion of its presence in the markets covered by the acquisition agreement.
As for the timetable, approvals in the largest markets are expected by the end of 2026, with the smaller markets to follow in stages, depending on how procedures progress in each country.
When it announced the DUROGESIC® deal, Lavipharm estimated that the acquisition could increase the Group’s annual sales by more than 60% and its export activity by more than 150%. How do those estimates stand today, taking into account the phased activation of the markets? Over what period do you expect the acquisition to have its full impact on revenue, EBITDA and profitability?
Our initial estimates for sales growth remain largely unchanged. DUROGESIC® is expected to be fully commercialised during 2027, when sales will have begun in all markets.
The transfer of production to Greece will play a decisive role in profitability. The product is currently manufactured abroad at a significantly higher cost to us than it will be once production moves to our facilities.
Production in Greece is scheduled to begin in autumn 2027, which will enable us to almost double the gross profit on sales made during 2028.
In recent years, Lavipharm has expanded its portfolio with established pharmaceutical products such as Lonarid N®, Lonalgal® and Flagyl®. Why have you chosen to grow by acquiring existing products, brands and marketing authorisations, rather than relying exclusively on organic growth and research? What are the main criteria you use to assess a potential acquisition?
There is limited scope for organic growth in the Greek market, which is where products such as Lonarid N®, Lonalgal® and Flagyl® are sold. At the same time, prescription medicines are subject to clawback, which minimises profitability.
In recent years, we have significantly increased our production capacity for transdermal products, and our investment programme in the liquids sector is also under way.
Our growth strategy has two guiding principles. The first is to acquire existing products aimed at international markets that we can manufacture at our facilities. The second is to develop new products through our own Research and Development (R&D) department, making use of our existing production infrastructure.
This is a strategy we have successfully pursued in recent years, both through acquisitions and by developing products through our own R&D department.
The consideration for the DUROGESIC® deal is $12 million and, according to the announcement, will be covered through a combination of new bank borrowing and the company’s own funds. How do you strike the right balance between debt and equity financing for transactions of this kind? How do you ensure that acquisitions create value for shareholders?
The acquisitions we made in previous years were funded by the successful share capital increase in December 2022. In the case of DUROGESIC®, the funding combines bank borrowing with the company’s own funds generated through operating profitability.
As Lavipharm develops and grows, its ability to fund that growth also gradually increases, both through new borrowing and by using the proceeds of its operations.
When it comes to acquisitions, our approach is based on identifying opportunities in the pharmaceutical market early, conducting an in-depth analysis of the financial data and, above all, being able to commercialise the products we acquire. We know the sector well and have the commercial expertise needed to develop their potential further.
This combination of market knowledge, careful assessment and commercial execution enables us to secure acquisitions on attractive terms and create value for our shareholders.
With DUROGESIC® marking an important step in international expansion, what is the next phase of the company’s investment plans? Are you considering further acquisitions of established pharmaceutical products or marketing authorisations, in Greece and abroad?
After an acquisition of this scale, our priority is to integrate the product effectively into the company’s existing operations and realise its full potential. This is a demanding process that requires careful planning and sustained effort.
Since 2022, we have shown that we can consistently deliver on our objectives, even in complex conditions. That does not mean, however, that we have stopped looking for new growth opportunities. On the contrary, exploring them is a constant part of our strategy and of the company’s DNA.
As we have said in the past, Lavipharm has now established itself as a trusted partner of choice for the world’s largest pharmaceutical companies. This enables us to discuss and assess new partnership opportunities as well as potential acquisitions. We therefore remain open to moves that are in line with our strategy and can support the company’s further growth.