July 3 (Bloomberg) -- 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. pulled out of a sale tender on June 7.
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