Ferrosan, which entered Pfizer’s portfolio in 2011, in the wake of an international deal, will continue its activity, with future investments depending on the group’s internal needs and the environment the company operates in, Townsend said.
“This facility produces mainly dietary supplements for export to Asia, the Middle East and Europe. It is a major part of our investment in Romania and we are investing in this area of production, research and development. It is our intention to invest further in Cluj. The plant will continue its activity. In the future, we are assessing our strategy to boost investments, but this will depend on internal needs and the environment we operate in,” said Pfizer Romania boss.
Ferrosan reached revenue of EUR12 million and net profit of EUR0.6 million in 2013, according to Finance Ministry data.
Pfizer is the fifth largest player in Romania’s drug industry, according to market research firm Cegedim.
According to Pfizer Romania official, the Romanian state should support the development of fields such as pharma or IT, which can help the economy grow, create better paid jobs and keep Romanians from going abroad.
Nolan Townsend comes after a two-year experience in Ukraine, where he ran the operations of Pfizer, which ranks among the top 15 players in that country. From a market where 90% of drug sales are generated by out of pocket payments such as Ukraine, the new head of Pfizer Romania now comes to a market where the state is the biggest buyer of drugs, generating more than 60% of the entire market.
Nolan Townsend says he had the possibility to visit Romania as early as last year, when he discovered an extraordinary country, but that has plenty to do in terms of its business environment. Nevertheless, he considers Romania is “relatively attractive” for investors.
Pfizer Romania SRL in 2013 generated revenue worth almost EUR130 million and net profit of EUR7 million, according to Finance Ministry data.
Pfizer Romania boss estimates the business will have a positive growth rate, above that of the overall market. On the market, managers’ and research companies’ predictions are cautious, indicating stagnation at best. Pessimism pervades as the lists of reimbursed drugs have not be updated and on the very high clawback tax, of 20%.
(English version by Catalina Apostoiu)