Nationwide coverage, reorganisation of the company and a position among the top ten distributors are the main medium and long-term goals of the general manager of Deva-based Farmaceutica Remedia, which currently ranks nineteenth on the distribution market.
Last year, the majority shareholder of the company, businessman Valentin Tarus, began an extensive expansion programme.
At the time the distributor only had a strong regional presence in the counties of Alba and Hunedoara.
In mid 2007, Tarus brought in a new manager, Gabriel Banica (35), who has taken charge of the restructuring and expansion of Remedia. Before joining Farmaceutica Remedia, Banica worked for eight years with GlaxoSmithKline (GSK), the leader of the domestic pharmaceutical market.
In the first half of 2007, Remedia sales increased by 29%, to 46m RON (13.9m euros), while the company's gross income climbed by 15% to 1.4m RON (0.42m euros).
This year, the company targets total revenues worth 124m RON (36.4m euros), up 36% from last year.
"One can certainly achieve organic growth in drug distribution. However, if we want to step up the pace, we will also have to consider financing. Although Remedia's growth rate continues to remain above the market level, it is not as high as we'd like it to be," said Banica. The company has announced that it plans to increase its share capital by 9.55m RON (2.84m euros) to 10.6m RON (3.15m euros).
"The first step we want to make is to increase our share capital and afterwards, depending on the way this operation goes and also the level of interest shown by investors, we'll decide on the next step," said Banica. In addition, he does not rule out the possibility to sell a stake to an investment fund.
Although drug distribution continues to be unattractive for investment funds because of the pressures on margins and the extremely unstable legislative framework, Banica believes the company has growth potential because of the positive prospects that stem from nationwide coverage. "(...) There are also good prospects because we have a fairly large degree of vertical integration," added Banica. He believes there is also growth potential for income, because of rising volumes and the heightened efficiency of operations.
The company's pharmacy network includes 37 pharmacies, with retail accounting for around one third of turnover and distribution for the rest. The sales team is made up of 18 medical representatives and 22 phone sales representatives.
Farmaceutica Remedia was formed after the merger between V. Tarus RoAgencies SRL and Farmaceutica Remedia Deva, which was created from the former Centrofarm Deva.
In 2006, Remedia was a regional distributor that covered only Hunedoara and Alba. The expansion programme started after the merger, and has progressed "in small steps". At present, Farmaceutica Remedia operates 7 warehouses.
Farmaceutica Remedia
Ranks nineteenth on the drug distribution market
Nationwide coverage, reorganisation of the company and a position among the top ten distributors are the main medium and long-term goals of its general manager
Sales increased by 29%, to 46m RON (13.9m euros), while income climbed by 15% to 1.4m RON (0.42m euros)
This year, the company targets total revenues worth 124m RON (36.4m euros), up 36% from last year
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