“Growth largely came from a new line of business, contract manufacturing, which enables us to work with other producers in the pharmaceutical business,” Adrian Oprea, the representative of the foreign shareholder in the board, told ZF.
In contract manufacturing, Laropharm produces drugs or food supplements for other companies in the pharmaceutical business. It also takes care of packaging, deals with the authorities among other things.
It makes money from selling the drugs to the company that contracted it which allows it to avoid the market risks (the biggest risk on the local pharmaceutical market is not collecting payment).
Laropharm works with Sanofi, Biofarm, Catena retail pharmacy chain and others for which it makes only over-the-counter drugs (OTCs, drugs that do not require a prescription). Contract manufacturing generates 60% of Laropharm’s revenue. The 2012 revenue stood at EUR6 million and the 2013 budget target is EUR6.5 million to EUR7 million.
Its majority shareholder is UK-registered Pharmaceutical Holdings Limited, which represents a group of financial investors in London, according to Oprea, who did not want to elaborate on the matter.
The investors are looking to sell Laropharm, but have not done anything yet, Oprea added.
(English version by Loredana Fratila-Cristescu)