Cancer drugs maker and distributor Sindan has concluded a partnership with one of the world’s biggest pharmaceutical groups Baxter (US), which could boost its exports and turnover by tens of millions of dollars over the next few years.
Baxter, which posted $8.1bn sales last year, will be handling the distribution and marketing of a number of Sindan products for most of the international markets, as enabled by the partnership.
Sindan had previously exported drugs, but only to the Central and Eastern European markets, so that sales outside Romania have not made much of an impact on its turnover. #leadend#
“The exports entailed by the partnership with Baxter will make a strong impact on our turnover, starting with the fourth quarter this year. It is precisely those imports and the broader distribution business that make us expect to see Sindan’s turnover up from the $40 million in 2002 to $70 million this year,” Aurel Tudose, Sindan’s general manager told Ziarul Financiar.
Starting export operations has been one of Sindan’s strategic concerns over the last few years. The company produces and distributes cancer drugs only, so that its speciality makes its development potential on the domestic market 100% dependent on the funds allocated by the Romanian State for cancer treatment. Practically, its only client on the cancer drug segment is the State, which has allotted $40-$50 million for this field in 2002 and 2003.
The cancer drug segment thus accounted for 7-8% of the total market, estimated at $600 million.
In order to avoid having to rely on the Romanian market only, Sindan’s shareholders (both Romanian and foreign individuals) have been looking at various development options over the last few years, with even the possibility of welcoming investment funds into the business contemplated. Two of the biggest foreign investment funds operating in Romania, Advent International and AIG New Europe Fund were interested in Sindan at some point.
“We eventually chose a partnership with an international group. Sindan is not for sale,” Aurel Tudose said.
Sindan’s portfolio comprises 26 cancer drugs, and it is the only company in this field of endeavour in Romania. It also works with several international groups such as Pfizer, Hoffman La Roche or Aventis, as it packages and distributes some of their cancer drugs on the Romanian market.
Production currently accounts for 25-30% of Sindan’s turnover, while distribution stands for the rest. Sindan’s about 2% share of the Romanian drug market is due to its output.
“Sindan has seen more than $15 million invested from 1996 onwards. Its productive capacity is now used 40%, so that there’s room for export growth,” Tudose says.
The investments have enabled Sindan to get full GMP certification, a mandatory requirement for every Romanian drugmaker by yearend.
The top players on the Romanian drug market are GlaxoSmithKline (UK) – 11.5%, Novartis (Switzerland) – 7.1%, Pfizer (US) – 6.1%, Sicomed Bucharest – 5.5%, Terapia Cluj – 3.9% and Antibiotice Iasi – 3.7%.