The general manager of the pharmaceuticals producer Antibiotice Iasi has called for the privatisation of the company as quickly as possible as it is in need of substantial funds for modernisation and investment to help it keep up with the ever tighter competition on the market.
“The privatisation of the company is a strategic step in the evolution of its business and represents a vital element for its competitiveness on the Romanian market. From this point of view, 2005 will be of utmost importance,” said Ioan Nani, the general manager.
He said the state could not keep on using the company to keep prices at a low level.
“It is unreasonable that the State should use Antibiotice as a regulator of the pharmaceuticals market,” he said.
While Sicomed Bucharest and Terapia Cluj-Napoca were already taken over by financial investors, Antibiotice is still controlled by the Romanian State through the Health Ministry, which owns the majority stake in the company.
Attempted privatisations in recent years have met with failure. In 2003, the Health Ministry took over the majority stake, believing this would allow it to control prices.
Had a foreign company turned up, the authorities maintained at the time, prices would have gone up, offering as an example the policies of foreign shareholders of other Romanian producers.
These shareholders have invested considerable sums in the modernisation of their companies, while carrying out some drastic restructuring measures.
In the coming years, both the US investment fund Advent International – the owner of Terapia – and Venoma Holdings – the investment arm of Black Sea Fund, Euromerchant Balkan Fund and Romanian Post Privatisation Fund (RPPF) which owns the majority stake in Sicomed – will exit the business, making way for strategic investors.
Antibiotice Iasi last year saw its total sales reach 33.6 million euros, a 3% increase year-on-year. Gross estimated profits were 4.5 million euros, around 7% higher than for 2003.
Higher sales on foreign markets made a major contribution to the company’s turnover for 2004, the Antibiotice manager added.
Sales on foreign markets account for 20% of the company’s turnover, more than 6.5 million euros last year.
For 2005, the company plans to increase exports by 25%.
Antibiotice’s best selling products are Nistatin, which gives the company 25% of the world market, and Vitamin B12, which secures them 10% of the international market.
Antibiotice’s main export markets are the United States, Russia, China, India, Malaysia and Indonesia.
alexandru.cerchez@zf.ro