Serbian Drugmaker Galenika to Cut Jobs, Wages to Post Profits

Galenika AD Zemun, a Serbian state-owned drugmaker, needs to cut 800 jobs and lower wages by 20 percent to return to profit, the Finance Ministry said.

The workforce should drop to 1,200 before the state starts talks with banks over rescheduling long-term debt repayments, the ministry said in an e-mail today. The government has asked the Belgrade-based company’s management to prepare cost-cutting plans together with trade unions, it said.

Galenika, whose loss shrank to 5.6 billion dinars ($63.6 million) in 2012 from 13.5 billion dinars a year earlier, is among four companies the government plans to sell to strategic investors. A unit of Canada’s Valeant Pharmaceuticals International Inc. (VRX) pulled out of a sale tender on June 7.

To contact the reporter on this story: Gordana Filipovic in Belgrade at gfilipovic@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.