This year Pliva is undergoing restructuring whose main aspect is discontinuing proprietary business and focusing on generic business.
The costs of restructuring in this year's first six months totalled USD47 million, Pliva controlling director Zoran Stankovic said on Wednesday presenting the company's results.
The discontinuation of proprietary business reduced Pliva's net profits by USD203 million, half of which is the loss from the sale of the Sanctura drug.
Other transactions were positive, generating a 15 per cent increase in revenue to USD625 million, mainly thanks to generic business, where revenue went up 12 per cent to USD383 million.
Pliva's overall revenue in this year's first six months went up 16.3 per cent to USD651.6 million, while sales went up 12 per cent to USD526 million. Sales in Western Europe went up 28.7 per cent, while in Central and East Europe and the rest of the world they went up 11.3 per cent. Sales dropped only on the domestic market, by five per cent, and in the United States by 3.9 per cent.
Pliva expects a 10 per cent increase in sales by the end of the year and USD170-180 million in earnings before interest and tax, close to last year's figure.
Despite the negative results, Pliva remains financially stable and capable of servicing all of its liabilities, which were USD800 million at the end of June, and of investing in new projects.
The consolidation of generic business is expected to be completed over the next two years.