Investments targeted new production units, quality control labs, product development and a logistics center, Erik Bogsch, the general manager of Gedeon, told Mediafax Monday.
The company is currently developing an investment project co-financed with European money worth a total of 15.35 million lei (EUR3.4 million).
Besides its production unit in Targu Mures (Gedeon Richter Romania), the group also owns locally a network of 120 drugstores (Gedeon Richter Farmacia) and medicine distributor Pharmafarm. The three companies employ about 1,400 people together.
According to Bogsch, Gedeon Richter’s portfolio in Romania includes over 120 types of medicines. About half of them are produced at the company’s plant in Targu Mures, he added.
Gedeon Richter’s sales in Romania rose 1.4% on the year to EUR131.4 million in 2012. The distribution and retail operations generated 85% of its local sales. Its medicine production division registered 0.6% higher sales last year, of EUR31.3 million.
Over 11% of the company’s overall turnover, of EUR1.13 billion, was secured by operations in Romania, which was the group’s largest market in the European Union.
Gedeon Richter expects its turnover will climb up to 5% in Romania this year. In the first half of 2013, its local sales rose 8% on the year to EUR71.2 million.
According to Finance Ministry data, Gedeon Richter Romania registered loss of RON29.2 million last year, from RON119 million in 2011. Gedeon Richter Farmacia reported loss of RON9.3 million, double on the year.
According to market research company Cegedim, Gedeon Richter was the 20th largest pharmaceutical company in Romania at the end of 2012, with a market share of 1.4%. (EUR1=RON4.4604)