Stada writes off Hemofarm's uncollectible receivables worth EUR 97 million

The German drug manufacturer Stada, owner of Vrsac-based Hemofarm, has decided to write off the uncollectible receivables in Serbia in the amount of EUR 97 million.

Stada's Managing Board has assessed that Hemofarm's receivables are mainly "probably impossible to collect," the company headquartered in Bad Vilbel, a town in the province of Hesse in Germany, announced today.

The company's release reads that Hemofarm's Supervisory Board held a meeting yesterday to discus the influence of the economic crisis on the Serbian economy, the liquidity problems experienced by the Republic Health Insurance Institute and drug wholesalers in Serbia, as well as the future stricter insolvency law in Serbia, which is planned to be adopted in 2012.

Stada has announced that it maintains contact with all local participants in the market of Serbia.

Following this decision, Stada's revenues in the third quarter will be reduced by about EUR 85 million.

The value of Stada's shares dropped by 15 percent (EUR 3.5) on the Frankfurt Stock Exchange on Wednesday, to EUR 19.75 per unit.