Terapia, eyeing Pharmaplant and Promedic

Pharmaceuticals company Terapia Cluj-Napoca is in talks to buy two Bucharest-based drugmakers: Pharmaplant and Promedic.

“These acquisitions will bring added value to Terapia by expanding its product portfolio, in terms of both existing and new product categories,” said Stephen Stead, general manager of Terapia Cluj-Napoca.

According to Stead, Terapia”s target is to strengthen its position on the Romanian market and the key export outlets.

“We believe the acquisition of these companies will trigger revenue growth and bring a larger portfolio to be efficiently promoted by our commercial team. This move is part of the company”s strategy to achieve organic growth through carefully selected acquisitions. Since talks are held between private companies and they have not been completed, we will not provide any details on the value of transactions,” Stead specified.

The Cluj-based company last year logged turnover worth 51.5 million dollars (41.45 million euros). In the first quarter of this year, the company”s turnover reached 33 million dollars (27.72 million euros).

Terapia, whose majority stake is held by investment fund Advent International, estimates turnover worth some 65 million dollars (about 50 million euros) this year, given the launch of new cardiovascular products.

“The product launches planned by Terapia for the following period are especially aimed at the cardiovascular segment, as well as other segments, such as the anti-inflammatory drugs,” Stead also said.

The representatives of the two drugmakers, Pharmaplant and Promedic, say they cannot disclose information about a possible takeover since no formal document has been signed.

“We are indeed negotiating with several companies, but no formal agreement has been reached with any of them,” said Grigore Iuga, marketing manager with Promedic.

Early this year, the two pharmaceuticals companies, Promedic and Pharmaplant Biogalenica expressed their intention to seal partnerships with foreign pharmaceutical companies in order to secure their survival on the domestic market.

Mircea Morait, general manager of the two companies, at that time considered the Romanian pharmaceutical market was characterised by monopolies, which were likely to make it impossible for Romanian small and medium-sized producers to promote their drugs in pharmacies.

“Market monopoly by pharmacy chains will bring us to a point where we will have no place left to sell our products. The market is ruled by the interests of these networks, which can have a single favourite importer or producer. For us, the low or high market growth rate means nothing,” explained Morait.