“At the time of the takeover we said we weren’t interested in growing our business this year but on relaunching it to make it work on a healthy basis. We expect RON265 million revenue for Labormed-Alvogen in Romania.”
US’ Alvogen bought Labormed in a complex deal last December in order to build a production, research and development and sales and marketing base in this region. The US company is in the process of building a presence in CEE.
Alvogen opened an office in Romania in 2010 and announced it recruited Laurentiu Scheusan as its executive vice-president of sales and marketing in the CEE. Scheusan is also Labormed’s chief executive officer.
It posted $1.9 million revenue in its first year in Romania and launched cancer treatment drugs such as Exemestan Alvogen, Irinotecan Alvogen and Letrozol Alvogen.
Labormed sells drugs for cardiovascular and central nervous system conditions, as well as over-the-counter drugs (vitamins, cold drugs etc.). Its brands include Indapamid LPH, Enalapril, Olanzapina LPH, Trachisept, Eubiotic and others.
Alvogen plans to launch new cancer, heart and OTC drugs in 2014.
Cardiovascular drugs are the largest segment of the drug market, with RON2.2 billion sales in June 2012-June 2013, according to market research company Cegedim Romania.
Second most important segment is cancer drugs, while OTCs have been growing at a faster rate than the overall market.
“Although we did not seek to boost revenue this year, we are aiming for growth of 15% in revenue in 2014, mainly by launching new products on the cardiovascular, cancer and OTC therapeutic segments,” Laurentiu Scheusan said.
The integration process has been completed and now the two companies work as one team, he added.
The new Labormed owners want to reduce the company’s reliance on the Romanian market, so they will launch products in Central and Eastern Europe and in the Commonwealth of Independent States.
More and more Romanian producers are trying to find customers abroad because payment terms are better and margins are higher there. Romania’s drug exports are put at EUR250 million.
Labormed is among Romania’s largest drug makers, according to a recent ranking compiled by Ziarul Financiar. The 40 largest drug producers (including those that make drugs for veterinary use) posted EUR671 million revenue together last year and had 8,166 employees. Only two companies saw more than EUR100 million revenue.
The largest local producers are Terapia, Europharm, Antibiotice, Sandoz, Zentiva, Gedeon Richter Romania.
(English version by Loredana Fratila-Cristescu)