Bolstering research

In the late 1950s, Orion stepped up resources for research and the development of new products. A scientific committee was set up. Research focused on “new active ingredients, the development of existing active ingredients so that they are cheaper to use or produce as well as basic research topics”. For instance, in 1959 Orion manufactured over 100 new products. At that time, the company had earmarked FIM 50 million for research, representing about one million euros in today’s currency. Even back then, the company’s strategy was to focus on selected therapy areas.

Orion started up the construction of business premises in Mankkaa, Espoo, in 1961. The first building to be completed was a pharmaceutical plant, in 1962. In 1966, a plant for the industrial production of synthetic pharmaceutical ingredients was also inaugurated in Mankkaa. Production, research and office facilities were built on the site in numerous stages. The administration and management were the last of Orion’s functions to move from Helsinki to the current head office, in 1984.

In the 10-year period from 1967–1976, sales of Orion’s drugs quadrupled. The company had to constantly invest in production capacity, but found it difficult to bankroll its surging growth. Capital was raised by increasing the share capital and long-term debt. Even that did not suffice. The capital shortfall was met by selling off assets. For instance, the chipboard mill Tiwi was sold to G.A. Serlachius in 1972.

From the start, Orion’s growth had been largely based on share issues. The company arranged its 23rd issue in 1974. At that time, it had 3,900 shareholders, most of whom were still healthcare professionals.

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