Leiden, December 14, 8:30 p.m
On December 13th, 2022, the court of The Hague appointed Henri Bentfort van Valkenburg as trustee of the bankrupt drug manufacturer InnoGenerics in Leiden. InnoGenerics operates the last remaining factory in The Netherlands that produces generic medicines in oral solid form on large scale.
Mr. Bentfort is investigating options to preserve this essential medicine factory for The Netherlands and Europe. The first priority is to keep the company operational until early next year so that there is time for that investigation. Since the security of supply and production of important medicines is at stake, the trustee expressly seeks support from the Ministry of Health, Welfare and Sport. The request for this was sent out today by letter. There will also be consultations at the ministry on Thursday, 15 December 2022.
InnoGenerics b.v. filed for bankruptcy after the company could no longer meet its obligations and potential financiers had displayed insufficient confidence in the company’s long-term viability under current (market) circumstances.
In the bankruptcy filing, the company refers to previous commitments, or expectations created, by the ministry to give priority to producers close to home in the tendering procedures (tenders) of health insurers. This would prevent almost complete dependence on Asian manufacturers and ensure the security of supply of important medicines. These expectations have not materialized. InnoGenerics therefore had to compete on only the very lowest – and moreover opaque – price with Asian producers, which proved unsustainable in the longer term. In addition, the high inflation and exploding costs for energy, raw materials and packaging materials increased future uncertainty. The trustee has taken note of this and will start an investigation into cause of the bankruptcy at a later date. This is a statutory duty of any trustee in a bankruptcy.
In a letter to the House of Representatives on Tuesday, the Minister pointed to the public interest that generic medicines must remain available to patients. The trustee is investigating whether there are solutions in which this societal interest can be served by a possible continuation of the company. This will be discussed at the ministry on Thursday. It will also be determined for which (critical) medicines shortages may arise as a result of the bankruptcy.
Due to the bankruptcy, the production of medicines at InnoGenerics will come to a standstill in the coming weeks if no short-term financial bridging is found. Together with all parties involved – customers, suppliers, employees, financiers and social actors – the trustee will investigate in the very short term whether there are still possibilities to keep production going in order to make a structural solution possible.