Laboratoires Thissen files for bankruptcy

Belgian court will shortly appoint a receiver to review options for NextPharma subsidiary

Laboratoires Thissen, the Belgian subsidiary of NextPharma Technologies Holding Limited, is to file a petition for bankruptcy with the Commercial Court of Nivelles in Belgium.

It is anticipated that the Court will shortly appoint a receiver for the site to review options for its future.

No other companies in the NextPharma group are affected by this decision.

The principal activity at Laboratoires Thissen is the manufacture of sterile cytotoxic products, which are mainly used for the treatment of cancer. The site currently manufactures products for a number of customers and employs around 300 people.

NextPharma Technologies said the demand for bankruptcy had become necessary because a number of Laboratoires Thissen customers have significantly reduced their orders in 2011 as a result of in-sourcing production or over-stocking in other markets.

‘This led to a 30% reduction in volumes and revenues compared with 2010 and a forecast EBITDA loss of around €5.0m in 2011,’ the firm said.

This year, NextPharma will have injected €4.7m into Laboratoires Thissen to support the business during an evaluation phase of the investment programme and the restructuring of the site.

The restructuring required the site to be returned to sustainable profit, demanded a major reorganisation, completion of the site’s Sterile Product Development Centre, which was intended to be the catalyst for developing new products, and significant investments in new sterile manufacturing capacities and capabilities.

Franck Latrille, chief executive of NextPharma Technologies Holding Limited, said: ‘Having undertaken a thorough strategic review of our operations, we are unable to make the financial investment required to secure the future of Laboratoires Thissen without risking the stability of the wider NextPharma business.

‘It is regrettable that this step has had to be taken, which will no doubt cause concern, particularly amongst our employees.

‘The next few days will be critical in determining the options for the site and I urge full co-operation with the receivers who are due to be appointed shortly.’

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