“The growth was fueled by the launch of new products and a higher emphasis on non-prescription drugs, for which there is no clawback tax,” said company general manager Dragos Damian.
Damian said the first quarter evolution of the local pharmaceutical market confirms forecasts of a decline for the sector in 2013.
“The market increased less than 5% in the first quarter, confirming analysts’ estimates of a contraction this year. Risks entailed by lengthy payment terms and an unsustainable clawback tax, as well as maintaining the lowest prices in Europe have more and more producers see their Romanian operations declining,” said Damian.
This year Terapia Ranbaxy plans to invest around EUR10 million and sees a 10% rise in sales and exports compared with 2012. Last year, the company had sales of RON450 million (EUR100 million), 7% higher than in 2011, when sales stood at RON421.2 million.
Exports currently account for around 20% of the company’s sales, namely RON90 million (EUR20 million), and its main export markets are Russia, Ukraine, the Commonwealth of Independent States, and the European Union.
Terapia launched 15 new products last year and plans to launch 12 others this year. Its production line in Cluj-Napoca makes 200 types of drugs.
At the end of 2012, the pharmaceutical company had 850 employees and plans to hire more this year.
According to company data and market studies conducted by Cegedim Romania, Terapia Ranbaxy ranks ninth on the local pharmaceutical market, with a market share of 3.7%.
Sales of medication in Romania stood at EUR2.63 billion last year, up 3.1% from 2011, according to Cegedim. Expressed in Romanian lei, the market increased 8.3% last yera.
Ranbaxy Laboratories, the biggest medicine producer in India, bought a 96.7% in Terapia Cluj-Napoca in 2006 from investment fund Advent International, for $324 million. In 2008, Japanese pharmaceutical group Daiichi Sankyo became the majority shareholder of Ranbaxy Laboratories.