The general manager of the Cluj-Napoca-based Terapia pharmaceutical group, Stephen Stead, says the management”s objective is to turn the name of the company into a regional brand. To this end, the company will carry on its policy related to its expansion on former Soviet Union markets.
This year, Terapia has resumed its drug exports to Belarus and has launched procedures to enter the Armenian market, taking further the projects destined to bring it back on the markets of the former Soviet region. Terapia halted its exports to Belarus in 2004 because of the product registration process required by that country.
“Terapia is interested in making acquisitions, particularly on the markets where we are already witnessing rising sales, such as Russia, Poland or Ukraine. On such an active market as the pharmaceutical one is, you have no other alternative but to take over other contenders or otherwise you”ll be eventually taken over. Our plan is to create a powerful pharmaceutical group,” said Terapia general manager. He added the group expected its products to be acknowledged in Turkey and Bulgaria and that it was going to open an office in Poland.
“We want to retain our leading position in terms of exports. Thus, boosting exports is a natural process and the recognition of Terapia, together with the Faringosept brand, are for us two instruments whose potential we haven”t used up yet,” explained Stead.
For 2006, Terapia forecasts exports worth around 16 million dollars and a sales growth to 100 million dollars. In 2005, Terapia”s exports volume rose by about 31% year-on-year, reaching almost 11 million dollars, particularly due to the company”s focus on the production of drugs treating cardiovascular diseases.
“Terapia hit the highest level of sales in this niche: 45% of total sold products were drugs used in the treatment of cardiovascular diseases, while 15% accounted for products designed for the nervous system and 12% for products created for the muscular-skeletal system,” Stead added. Turnover in 2005 amounted to 80.3 million dollars, an increase of more than 50%. According to Terapia management, the registered financial increase was triggered by the investments made in the company”s structure, the takeover of the two companies, Pharmaplant and Promedic, the development of export activities, the launch of 15 new products, media campaigns and also by the reformation of the health system.
“In 2005, Terapia held a 4.6% market share, considering producers prices. For this year, we expect to reach a 5.5% market share, amid an overall market increase by 10-15%. Financial projections for 2006 are closely related to the group”s strategy, which, as it happened during previous years, is centred on an intense export activity, targeting to strengthen the company in these key markets,” said Stead.
Terapia Cluj-Napoca
* Has resumed exports to Belarus this year and launched procedures to enter the Armenian market
* Is interested in making acquisitions particularly on the markets where its sales have increased
* For 2006 forecasts exports worth around $16m and sales growth to $100m
* In 2005 witnessed about 31% higher exports year-on-year, to almost $11m and more than 50% higher turnover, to $80.3m
* Plans to reach a 5.5% market share this year