Actavis Romania general manager, Dan Ivan, said the process of changing the company’s business model had started before Actavis was acquired by U.S. group Watson, in 2012.
“Changing the business model also entailed discarding direct sales toward drugstores and switching to the classical market approach via wholesalers. We have also created a business of OTCs (over-the-counter drugs – e.n.) which accounted for 1% of the company’s turnover two years ago, whereas today, it is nearing 15%,” said Ivan adding it is important to sell OTC drugs on a market like Romania, because they are not subject to the clawback tax and, theoretically speaking, they generate revenues way faster than prescription drugs.
Actavis aims, in the next two-three years, to increase the share of OTC drugs in the company’s turnover to at least 30% and keep a growth rate above the market’s.
“The overall market grows nearly 3%, the generic drug market enjoys a double growth rate, of 7%, in terms of value, while Actavis’ growth rate is little below 30%. The plan is to grow faster than the market on a long term and to gradually increase the share of OTC drugs,” Ivan added.
According to Actavis, which cites data of market research company Cegedim, it ranked 18th among pharmaceutical companies in Romania, at the end of the first nine months of 2014, and seventh among generic drug companies. Worldwide, Actavis ranks third among generic drug producers and targets to hold the same spot in Romania.
According to Finance Ministry data, the company’s turnover fell 10.8% on the year, to RON319.48 million (EUR72.3 million), in 2013, while its net profit plunged 49%, to RON13.8 million (EUR2.9 million).
Actavis head expects the company to end 2014 with 25-30% higher turnover, considering an increase of over 28% in January-September.
End- 2012, Actavis was acquired by American group Watson Pharmaceuticals, which subsequently changed its name to Actavis. Watson paid EUR4.25 billion in cash for Actavis within a transaction that created the world’s third largest generic manufacturer.
Actavis owns in Romania cancer drug maker Sindan acquired in 2006 for EUR150 million.