Teva Pharmaceutical Industries is looking to expand its presence in Hungary, according to local reports.

The Vilaggazdasag newspaper reports that the Israeli drugmaker is looking to double capacity at its plant in Debrecen, Hungary. This will involve a $100 million investment and is conditional on agreeing subsidies with the government, the paper quotes Peter Gabor, head of business development at Teva Hungary, as saying.

Teva has spent a combined $630 million on investments and R&D since launching in Hungary 10 years ago, but it may also consider other targets in central Europe for expansion. The firm has been hit hard by levies on its drugs in Hungary over the last year in a bid by the government to reduce the deficit of the central state health fund.

Vilaggazdasag quoted Teva as saying that the aforementioned levies alone cut its revenues in Hungary last year by 1.5 billion forints, or almost $8.6 million. Teva's consolidated sales in the country in 2007 reached 175 billion forints.

This is a time of considerable expansion at Teva. The firm is reportedly planning to invest over $1 billion to acquire Indian drug companies and set up manufacturing facilities in the country and has just agreed to pay $400 million to buy private US biotechnology group CoGenesys.