SOPHARMA ACQUIRES 68 PHARMACEUTICAL PRODUCTS

07 October 2024

Stock Exchange Stats

Index Close Weekly Change % YTD
SOFIX 854.78 -0.11 11.72
BGBX 40 168.20 -0.44 6.54
BGREIT 206.46 0.12 8.49
Index P/E EV/S P/BV
SOFIX 9.85 0.22 1.61
BGBX 40 13.68 0.43 2.04
BGREIT 20.69 n/a 2.39

BSE Weekly Gainers & Losers

Top Gainers Price Change %
NGAZ Oil&Gas Exploration 5.30 17.78
HSOF Holding Sveta Sofia 3.90 10.80
HLEV Zlaten Lev Holding 4.38 9.50
SNRG Synergon Holding 1.26 6.84
MSH M+S Hydraulic 9.90 6.44
Top Losers Price Change %
SPDY Speedy AD 193.00 -8.10
BDT Biodit AD 0.91 -5.21
NEOH Neochim AD 19.20 -4.95
GTH Galata Investment Co 2.40 -4.76
FIB Fibank AD 3.98 -4.33

Market Overview (30 Sept – 4 Oct)

The main Bulgarian index SOFIX decreased this week by 0.11% to 854.78 points. The broad index BGBX40 decreased this week by 0.44% to 168.20 points and BGREIT increased this week to 206.46 points, up by 0.12%.

Corporate News

Sopharma (SFA) initiated a transaction for acquisition of a pharmaceutical product portfolio consisting of both CHC and prescription products in the following therapeutic areas: Sex hormones and modulators of the genital system, Urologicals and Antivirals for systemic use. The acquisition totals 68 marketing authorizations with 14 well-known brands in 10 of the traditional markets of the Company, The transaction will take place in stages and its closing is subject to certain condition precedents. The acquisition will be financed with own funds and through an investment loan. The counterparty and the price of the transaction have not been announced.

Wiser Technology / Bianor (BNR) announced that it has made an amendment to the ongoing capital increase procedure. The company extended the subscription period of new shares from 10 to 14 October 2024. In addition, 2 151 229, or 93.7% unused capital increase rights of BNR were bought during the auction held on October 4.

Shelly Group (SLYG) announced that it has sold 100% of the capital of its subsidiary Shelly Properties Ltd. According to the statement, the main asset of the latter was the previous office building. The proceeds from the deal amounted to BGN 6.8m, which unlocks capital for additional investments. Recall that Shelly moved to a new office place in order to support the expansion of the team and the development of the business.

Economic News

  • The revenues under the consolidated fiscal programme (CFP) of the Bulgarian government totalled BGN 46.5bn as of end-August (64.8% of the annual estimates). Compared to the same period of 2023, they increased by BGN 4bn (+9.5% YoY) in nominal terms. Tax proceeds amounted to BGN 37.5bn, while non-tax and grant and donation proceeds (mostly EU programme and fund grants) amounted to BGN 6.5bn and BGN 2.5bn, respectively. CFP expenditures, including the contribution of Bulgaria to the EU budget for August 2024, amounted to BGN 48.2bn, which accounts for 59.1% of the annual estimates. The CFP budget balance on a cash basis as of end-August 2024 was negative, amounting to BGN 1.7bn (0.8% of GDP). As of 31.08.2024, the fiscal reserve amounted to BGN 10.7bn.
  • In Sept’24, the total business climate index decreased by 1.0% MoM. The composite indicators in Services sector and Construction remained flat compared to the previous month, while Industry dropped 5.2% MoM. The only subsector that improved was Retail trade, which jumped 4.7% MoM. The biggest challenges facing the services sector are economic uncertainty and competition. The problem in the construction sector continues to be the uncertain economic environment, cost of materials and shortage of labour. The main problems facing the industry sector remain economic uncertainty and shortage of labour. Retail trade’s most serious factors limiting activity are economic uncertainty, competition in the branch and insufficient demand.

Ivaylo Valchev
Equity Analyst
Tel.: +359 2 937 9862
e-mail: valchev@sis.bg

Svetozar Abrashev
Senior Managing Partner
Tel.: +359 2 937 9869
e-mail: abrashev@sis.bg

Sofia International Securities
Sofia 1000,
140 G. S. Rakovski Str.
Tel.: + 359 2 937 98 65
e-mail: info@sis.bg

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