PHARMACEUTICAL GIANT PLIVA EARNS USD 134.5M IN NET PROFIT IN 2000

ZAGREB, March 16 (Hina) - For six consecutive years, Croatia's pharmaceutical company Pliva has been recording a strong growth, with an average annual rate of 19 percent. Pliva wrapped up the business year 2000 with a net profit of 1.13 billion kuna (approx. $134.5 million), 22.9% more than in 1999.#L# Income earnings increased by 18.7%, reaching five billion kuna (approx. $595 million), Zeljko Covic, Pliva's chairman of the board, told an international press conference in Zagreb on Friday. He stressed earnings from international markets accounted for almost 71 percent of the entire figure. Last year more than 360 million kuna (some $42.9 million) were invested in development and research, which resulted in three medicines in the process of testing and the development of more than 40 generic products. Last year also saw Pliva make the first acquisition in western Europe, the take-over of Dominion Pharma, a British company, and the sale of non-domestic businesses, the Kvasac company and part of the plant in Poland. Earning per share increased by 31% and by 12% per GDR. The price of Pliva shares on the London Stock Exchange rose by 8%. Covic said five or six new products will appear on the market by the end of the year, while the effect of their sale by the end of 2005 is expected to reach $90 million. Capital investing will resume, and a research institute is expected to be completed by year's end. Covic said Pliva would not move its management anywhere and that there was no pressure from investors. Asked by a Polish journalist about further acquisitions in Poland, the board chairman said Pliva did not intend to purchase new companies in central and eastern Europe but would further invest in companies in Poland and the Czech Republic. The strategic objective is to make more purchases in western Europe. (hina) ha