Europharm SA's profit slumps

Brasov-based Europharm SA, one of the leading generic drugs makers in Romania, owned by British giant GlaxoSmithKline, saw its profit plunge last year (by almost 98%), compared with 2004, to 0.36 million RON (some 0.1 million euros). Turnover fell by some 31.5% in the same time interval, reaching 56.92 million RON (15.7 million euros) at the end of last year. “The change seen in Europharm SA’s turnover in 2005 against 2004 is the result of a strategic repositioning started at the end of 2004, both through the rebranding of the Europharm group (including the later rebranding of some Europharm’s brands – Eurovita, for example), but is also the result of a reorganisation of Europharm’s portfolio, which is still being developed,” Roberto Musneci, vice-president and regional director for Southern and Eastern Europe of GSK told MEDAIFAX. He specified that the reshaping of the portfolio was meant to result in the setting up of a group of products that are better suited to the demand on the Romanian pharmaceutical market. He also added that the progression of turnover had an impact on the company’s profit, but only a partial one.