Oslo, Norway, 30 August 2016
Norwegian pharmaceutical company Vistin Pharma ASA (OSE: VISTIN) today announced that it will invest NOK 120 million in a major expansion of its metformin production facility in Kragerø, Norway. The investment will double Vistin Pharma's production capacity, and the Company is targeting a 15 percent share of the global Metformin API market.
"This expansion is an important milestone for Vistin Pharma and will strengthen our position as one of the world's largest producers of metformin - the standard first-line treatment for Type 2 Diabetes. With a new production line in place, Vistin Pharma will be able to better serve existing and new customers and grow our business significantly," says CEO Kjell-Erik Nordby.
The NOK 120 million investment will be financed by existing cash reserves, cash generation and debt. The new production line is expected to be fully operational from 2019, and will expand the production capacity by 3,000 metric tonnes (MT).
The global market for metformin is expected to grow by 7-8 percent per annum for many years to come. Vistin Pharma's current capacity has allowed the Company to produce 3,000 metric tonnes (MT) of metformin annually. According to Company estimates, Vistin Pharma controls approximately 8 per cent of the global market for metformin. Global pharmaceutical companies purchase metformin for use in producing drugs to treat type 2 Diabetes. With this expansion, Vistin Pharma targets a 15 percent global metformin API market share.
"This capacity expansion reflects Vistin Pharma's aggressive growth strategy. The underlying stable growth in the metformin market, coupled with continued strong demand for Vistin Pharma's premium products, makes us confident that this investment will be a profitable one," says Nordby.
Vistin Pharma will give its 2nd quarter presentation today at 08:30 CET at Felix Konferansesenter, Bryggetorget 3, Oslo, Norway. CEO Kjell-Erik Nordby and CFO Gunnar Manum will represent the Company. The presentation will be webcast live and can be accessed directly from http://webtv.hegnar.no/presentation.php?webcastId=36208894, or http://www.vistin.com/investors/webcast-article214-455.html.
For further information, please contact:
+47 91 36 42 80
+47 95 17 91 90
About Vistin Pharma
Vistin Pharma is a Norwegian pharmaceutical company producing Active Pharmaceutical Ingredients (APIs) and solid dosage forms for the global pharmaceutical industry. The Company has key positions in the Metformin and Opioids markets, and a strong foundation for creating a highly efficient Contract Manufacturing tablet production (CMO) business. Solid growth potentials exist in all the business segments.
With more than 65 years of pharmaceutical industry experience, Vistin Pharma has built significant capacity and expertise as an API provider. The Company has more than 140 highly qualified employees and two manufacturing facilities in Kragerø, Norway. Both facilities are certified according to current Good Manufacturing Practice (cGMP) and successfully inspected by the US Food and Drug Administration (FDA) in 2014. Vistin Pharma's headquarter is in Oslo, Norway.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Vistin Pharma ASA via Globenewswire