Ropharma reported a turnover of 385.16 million lei (EUR90.8 million) and net profit of RON10.6 million (EUR2.5 million) in 2011. The company’s turnover is expected to grow by nearly 12% and reach up to RON431 million in 2012. Miron said it is “close to the initial target,” which envisaged a 15% uptick in sales in 2012.
“It depends a great deal on whether the new healthcare law will take effect and I hope fund allocations for the healthcare sector will reach 6% of the gross domestic product. Late payments are one of the biggest problems,” said Miron. He added that there is room for growth in the healthcare industry because medicine consumption and healthcare costs are below the average in the region.
Ropharma absorbs independent pharmacies
Ropharma operates a network of 123 pharmacies and this year it has taken over nine units via merger through absorption.
“In 2013, the company will witness both an organic growth and an increase based on acquisitions,” he said, adding Ropharma will take over at least ten pharmacies, as there are many independent pharmacies facing problems.
Ropharma also produces and distributes medicines and has two production units in Targu-Mures and the Republic of Moldova, respectively.
“The growth rate in the Republic of Moldova is higher than in Romania, ranging between 15% and 20%, the price control is not so strict and the profit is higher. We plan to expand in Chisinau and also in Targu Mures,” according to Miron.
Miron is one of the most prominent investors in the private healthcare sector. His first project – Europharm – had been gradually sold to UK group GlaxoSmithKline in early 2000s. His comeback is tied to Ropharma, which made it to the top of largest pharmacy chains.
The hospital in Brasov hasn’t yet reached break-even
Medicines are not the only sector Miron has focused on. He also owns shares, alongside other business partners, in St. Constantin private hospital in Brasov, a 133-bed unit which engulfed EUR20 million.
Miron’s business partners in Teo Health company, which operates St. Constantin hospital, include Firu Floriean (former vice-president of SIF Transilvania) and Teodorescu Constantin.
“There is a positive evolution (in terms of revenues), but the hospital hasn’t yet reached break-even. It is getting closer, however,” Miron added.
On the segment of drugstores, Miron’s pharmacy chain competes against Sensiblu, Catena, Dona, Help Net, Centrofarm, while on the medicine distribution segment, its competitors include Mediplus, Farmexpert, Polisano, Europharm, Fildas, Farmexim and ADM Farm.
Terapia Ranbaxy, Europharm, Sandoz, Zentiva (SCD.RO) and Antibiotice (ATB.RO) are among the largest drugmakers on the Romanian market.
The Romanian pharmaceutical market reached EUR2.55 billion in 2011, up 11.5% on the year, according to market research company Cegedim.
(English version by Ecaterina Craciun)