News Today ...
Thursday July 16, 10:00 am Eastern Time
Company Press Release
Global Spill Pharmaceutical Subsidiary Announces Significant New Developments
LINFIELD, Pa.--(BUSINESS WIRE)--July 16, 1998--Global Spill Management Inc. (BIOF) announced Thursday the following significant new developments affecting its Biofarm S.A. Romanian pharmaceutical acquisition:
a) organizational restructuring:
employee redundancies and planned retirements will reduce operating costs by slightly more than $100,000 per annum. A new marketing department, organized in May, 1998, is headed by an experienced executive recruited from Hoffman LaRoche. A new sales department, formed in July, 1998, is headed by Eli Lilly's former top salesman in Romania.
A new Support Services Department, organized in June, 1998, will concentrate upon producing efficiencies in transportation, engineering and maintenance departments, and is specially charged with eliminating waste carryovers from former state ownership.
A new Information Technology Department was formed to provide management with modern information systems. And a new Human Resources Department was created to assist in the elimination of excess personnel, hire and train employees with needed skills and prepare incentive-driven performance standards.
b) customers:
the new marketing and sales departments have initiated closer relationships with key customers. Also, they have identified at least two major distributors who are anxious to distribute Biofarm products in the export market.
Generally, the chief customer complaint has been the inability to obtain from Biofarm a sufficient quantity of the more highly demanded (and profitable) products produced by Biofarm.
c) production:
Beginning in August, 1998, production will be increased by about forty (40%) in terms of wholesale value. Obtaining such level of production will mean virtual capacity in production. This will represent the first time Biofarm will have reached production capacity since 1989.
d) suppliers:
historically, Biofarm has purchased its raw materials from numerous suppliers without effective planning tied to production requirements. Management is now researching the market for additional suppliers in order to obtain more favorable materials costs.
It is believed that longer term contracts for greater quantities with fewer suppliers will be beneficial. Management believes this will result in reduced raw materials costs and more efficient inventory and production management.
Biofarm believes that the successful combination and achievement of the foregoing strategy objectives will not only consolidate but will continue the improvement in operating income that commenced in 1997.
Biofarm's strategy is to take advantage to the maximum extent of the opportunity afforded to improve profitability in comparison with operating results under former state ownership.
With cash balances at an all-time high as of today, Biofarm has already experienced the benefits of privatization and intends to continue to exploit that opportunity.
THE FOREGOING FORWARD-LOOKING STATEMENTS INVOLVE ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN ANY BUSINESS VENTURE, ESPECIALLY ONE COMMITTED TO MAXIMIZING PROFITS BY MAKING A TRANSITION FROM STATE TO PRIVATE OWNERSHIP.
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Contact:
Global Spill
Desiree Pierson, 610/495-8413 |
