MedLife, provider of medical services and a major market player, expects to derive turnover worth 21m euros this year, up 70% on last year's value.
One of the company's medium-term plans envisages the sale of a stake on the Stock Exchange, or even on a foreign capital market.
"MedLife is considering floatation on the Stock Exchange, either in Romanian or abroad, starting 2010. Until then, we'll focus on the development of our domestic operations in order to reach the desired financial maturity," said Ciprian Ciobanu, a manager with MedLife. Two years ago, the company's representatives suggested 2008, as the start date for a possible floatation.
MedLife finished 2007 with turnover worth 12.7m euros, up 67%.
"This was the outcome of the integration of several factors: the opening of Life Memorial hospital, the expansion of services provided by MedLife Hyper-clinic and the medical investigation labs, investments in personnel training and the instalment of state-of-the-art medical equipment," said Ciobanu.
In 2008-2009, the company will invest 25m dollars in five large clinics and private hospitals. Thus, units in Timisoara and Cluj-Napoca will open in 2008, with another 3 units due to be finalised in the first half of 2009: Iasi, Brasov and Constanta. The money will come from the company's own funds and generated profits (14m dollars) and from funds provided by IFC, the minority shareholder in MedLife (11m dollars).
Last year, the company's investments came to 6m euros. The number of the company's subscribers hit 130,000 clients, of which over 1,300 were companies (double the level year-on-year), while on the segment of clients paying per service MedLife reported a 72% increase against 2006.
Last year, the company opened its first private hospital, Life Memorial Hospital, in the wake of investments worth above 10m euros and in the first six months attracted 3,000 patients.
MedLife has 635 employees, of whom 400 are doctors and medical personnel.
According to the data provided, the company holds a 32% market share in Bucharest, on the segment of corporate clients, one of the most important market segments.
MedLife's shareholding structure is divided between IFC, the World Bank's investment arm, with 20% of stock, whilst the Marcu family holds the rest. The deal by which IFC became a MedLife' shareholder was concluded in October 2006. This was the first takeover that set the tone of acquisitions and mergers on the market of private medical services.
The private medical sector in 2007 posted a growth rate of 28-30%, which is expected to continue this year, according to MedLife representatives' estimates. According to them, the industry is poised to reach 300-400m euros this year.
MedLife
Expects to reach turnover worth 21m euros this year, up 70% on last year's value
In 2008-2009, the company will invest $25m in five large clinics and private hospitals
In 2007, the number of subscribers hit 130,000 clients, of which over 1,300 were companies (double the level year-on-year) while on the segment of clients paying per service MedLife reported a 72% increase against 2006
MedLife has 635 employees, which includes 400 doctors and medical personnel
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