“We hit our sales and profit targets for this year. We launched new products that contributed (…) a lot to the company’s profitability. It is important that we reach our export targets in 2013 because we have product registration procedures in progress in Europe, US, Russia, northern Africa and all Arab countries,” Ioan Nani told ZF in an interview.
Antibiotice announced early this year it had budgeted 309.1 million lei (EUR69 million) sales, up 9.6% and RON25.1 million net profit, up 24%.
Antibiotice Iasi ranks 11th among local pharmaceutical companies, with a 2.5% market share in October 2011-September 2012, according to market research firm Cegedim Romania.
The Health Ministry-owned company is one of the few state-run companies that stayed profitable and expanded exports, while others, like Oltchim, are in the red and expect the government to come up with solutions to resume production.
The plant was built in Iasi (NE Romania) in 1953-1955 and operated as Fabrica Chimica nr.2 (Chemical Plant no.2) at first. It was the first plant in SE Europe that made penicillin (the active pharmaceutical ingredient – API). It has been operating as Antibiotice (Antibiotics) since 1959.
The plant used to export 50% of its production (API’s) in the eighties, during which time it got 44 pharmaceutical patents. It was listed on the first tier of the Bucharest Stock Exchange in 1997 and its current market capitalization stands at almost RON210 million.
“I think Antibiotice has a tradition of properly managing its business. We have a tightly knit management team that has remained loyal (…) Antibiotice introduced management by goals in 2002-2003 and therefore each operation is thoroughly checked through the goals set. Export contributes to our efficiency,” says Ioan Nani, explaining how a state-run company can keep making profit.
The company exports Nystatin (an API used by drug producers) to Asia, South America, Europe and US, as well as anti-infectious drugs (mainly antibiotics), heart and digestive system drugs.
Exports will generate about 23% of the sales this year, and then 26% in 2013 and 30% in 2014.
Antibiotice is due to the start penicillin exports to Algeria soon, after getting a contract for $4 million a year. Exports were Antibiotice’s growth driver in the first nine months.
The company launched seven new products in the first nine months, three of which are drugs for cancer treatment. Cancer drugs were an older project of Antibiotice, which preferred to wait to get the necessary permits for all its new products before starting to sell them, Ioan Nani said. It plans to release 30 products by 2016.
“We have a business plan until 2016 we already started implementing. The plan is to have Antibiotice boost exports to more than $30 million (EUR25 million) by 2016 and we would also like to see our sales at EUR124 million,” Nani added.
(English version by Loredana Fratila-Cristescu)