Help Net Farma, the company operating one of the biggest pharmacy networks on the market, registered 100% sales growth during the March 2005-March 2006 period compared with the previous similar period.
“The sales we logged were generated both by a process of quantitative growth, by the opening of new outlets, as well as by a qualitative growth secured by a process of activity reorganisation and efficiency boosting,” states Isabelle Iacob, general manager of Help Net pharmacy network. She also says demand for dermatocosmetic products is rising.
In the first three months of this year, Help Net business expanded by approximately 50% to 8.5 million euros.
“Our patients are showing growing interest in dermatocosmetics, which in a pharmacy come with the additional advantage of an expert recommendation. Thus, we expect this product segment to account for 20% of turnover this year, and the sales we’ve registered so far reinforce our expectations,” states Isabelle Iacob.
For this year, the company has budgeted turnover worth 47.5 million euros, 80% higher than the figure posted in 2005.
In 2006, the budget allocated for development investments stands at 1.5 million euros, with Help Net’s management intending to own anywhere between 110-120 pharmacies by the end of this year. Currently, there are 92 Help Net pharmacies countrywide, of which 47 are in Bucharest.
“Help Net is a strong brand, which, due to its dynamism and growth, has drawn the attention of not only one, but several companies that are interested in either an acquisition, or a strategic alliance,” Isabelle Iacob also said.
Help Net officials stated they were not considering contracting a banking loan for the time being since they say the company has the necessary resources to back a viable development plan. Asked by ZF if Help Net will contract loans from banks to finance the expansion of operations following the model of Sensiblu, part of A & D Pharma, the company’s officials answered: “We have enough internal resources to generate a 100% sales growth rate, a solid computerised system and resources for a healthier, and not stronger growth. We consider that while it is easier to invest, recouping one’s invested money is the toughest task. An aggressive growth is not always a healthy one”.
There are over 4,500 pharmacies present on the market, and the most important networks are Sensiblu, part of A & D Pharma, Help Net, Catena, which belongs to the Fildas group of firms, Remedio-Montero and Dona pharmacies that belong to Siepcofar company.
The pharmaceutical market has become highly competitive lately amid the acquisitions in the production and distribution sectors.
Last year, pharmaceutical consumption rose by about 18% to 1.27 billion euros (4.6 billion RON), according to Cegedim data.
Help Net
Posted 100% higher sales during March 2005-March 2006 compared with the previous year
In the first three months of the year, the business grew by about 50% to 8.5 million euros
Dermatocosmetics are expected to account for 20% of turnover this year
Has budgeted turnover worth 47.5 million euros for this year, 80% higher year-on-year
Has earmarked development investments worth 1.5 million euros for 2006, planning to own 110-120 pharmacies by yearend.