Grcic: It's important to secure funds for the future of Immunology Institute

Deputy Prime Minister Branko Grcic said on Thursday that in the process of privatisation of the Institute of Immunology it was important to ensure funds for its future, while Health Minister Sinisa Varga said that if that failed, the Economy Ministry needed to find a different model for the survival of this strategic company.

"To be honest, I would have preferred if more companies had responded to the tender, to ensure sound competition. What is important here is to ensure money for the future of the Institute. I'm not saying that the sole remaining bidder won't do that, we'll see that in the coming days," Grcic told the press before a Cabinet meeting.

Grcic said that over 100 million kuna would need to be invested to maintain the necessary quality of the Institute. "We expect the bidder to offer a full programme as envisaged in the tender documentation."

The government is selling 159,997 shares or 54.38 per cent of the Institute of Immunology. The controlling block of 25 per cent plus one share would remain in the ownership of the Croatian Health Insurance Institute (HZZO).

At the Restructuring and Sale Centre (CERP) on Wednesday, only one binding offer was opened, that of Visia Croatica. This association accepted the terms and conditions of the tender and offered slightly over 8 million kuna for the Institute. The CERP will analyse the offer and submit its opinion to the government.

The starting price is HRK 49.30 per share, and a prospective buyer is required to invest at least HRK 100 million in the construction of a new production facility to secure long-term licences for the production of viral and bacterial vaccines from human and animal plasma and allergens and preparations from animal blood. The deadline for the completion of the investment cycle is one year from the signing of the sales agreement and the transfer of shares.

Meanwhile, the Health Ministry on Wednesday annulled the decision by the Agency for Medicinal Products and Medical Devices (HALMED) to deny the Institute of Immunology licences for the production of bacterial vaccines and blood preparations, citing procedural omissions. The case was sent back to HALMED for reconsideration. The Institute will not be able to resume production until HALMED carries out an inspection and grants production permits.

Health Minister Sinisa Varga said on Thursday that if the sole bidder for the Institute of Immunology failed to secure the necessary funds, the Economy Ministry would have to find a different model.

When asked by the press if he thought that Visia Croatica was able to raise HRK 100 million to become a strategic partner to the Institute of Immunology, Varga said it all depended on banks and how this company was rated by them. "Capital today is relatively cheap and they can most probably obtain the necessary funds. If not, the government, that is the Economy Ministry must find a different model," the health minister said.

Varga said that the HZZO was not interested in taking over the entire Institute. "The HZZO is a payer of health services and not a producer, so it's best for the Institute to be outside government ownership," he said.

(Hina) vm

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