Mid-August, Antibiotice announced that it had signed a deal whereby Pharma Iasi would buy medicine worth an estimated total RON50 million this year.
The medicine will be bought in tranches, depending on the buyer’s orders.
In the first half of this year, Antibiotice, which holds a 30% in Pharma Iasi, sold products worth a total RON23.4 million to the latter, representing 46.8% of the contract’s value.
In addition, the two companies have concluded a contract worth RON17 million, whereby Antibiotice buys market prospecting and placement services for the entire portfolio, except injected medicine.
A third contract, concluded between the two companies, sees Antibiotice paying RON450,000 for promotion services in the Pharma distribution network. The package includes product presentation by pharmacists and doctors, symposiums, conferences, promotional campaigns, market studies and opinion surveys.
The three contracts were concluded at the end of 2010.
Antibiotice’s economic director, Constantin Acatrinei, holds a 20% stake in Pharma Iasi.
Antibiotice posted a 20% year-on-year increase in its first half sales, to RON138.5 million, while pretax profit rose 35% to RON28.2 million.
The company is 53% owned by the Health Ministry, while regional investment fund SIF Oltenia (SIF5.RO) holds 10%.
Antibiotice shares were down 0.12% on the day Tuesday, to RON0.415. (EUR1=RON4.251)