She refers to the reduction by 15% of the price of drugs included on a list of subsidized drugs (list C2, also including the cancer drugs which are Actavis’ focus in Romania), according to a proposal launched for public debate by the Health Ministry.
“Even though the 15% reduction will entail a certain decline in expenses related to the drugs used in the national healthcare programs on the short term, the negative effects will be the ones to prevail soon,” Alina Culcea said.
A possible 15% cut decided for the entire list of products,
added Culcea, would hurt generic drug producers and result in the
disappearance of some products that can no longer be supported
financially.
In the first six months of this year, Actavis sales of its own
products amounted to some EUR14.5 million. “The figures were
approximately 19% lower than last year. The decline is accounted
for by the emergence of new rivals on the generics market,
especially in the oncology area, one of our basic pillars as a
business segment,” added Culcea.
According to her, the company was also harmed by its receivables.
“On top of this, there has been the experience of insolvency among many retail pharmacies and of drug distributors in 2010,” Culcea said. “This has prompted us to be more cautious in terms of client portfolio management, deciding not to sell where the risk of nonpayment is obvious, or where accumulated debts go beyond the lending cap Actavis can bear.”
Actavis is one of the largest drug exporters of Romania though the Sindan plant it owns in this country. Payment is easier to get from other countries compared with the local market.
“We can say the export activity has been a ‘breath of fresh air’ on a market choked by the liquidity crunch. For the first six months of 2011, Sindan Pharma posted export sales over 30% higher than a year ago,” said Bogdan Oghina, general manager of Sindan Pharma.
According to the provided information, the advance came mainly on the inroads on new markets and the launches of new oncologic drugs. The company exports to over 60 countries.
Domestically, Actavis launched 14 new products and plans to launch a similar number this year, projecting sales of around EUR2.4 million. In 2010, Actavis posted sales (including exports) of around EUR93 million. Domestic sales dropped by around 8% from 2009.
(English version by Catalina Apostoiu, Editing by Loredana Fratila-Cristescu)