Cluj-based pharmaceuticals company Terapia has strengthened its market position, after its representatives signed contracts for the acquisition of two pharmaceutical companies - Pharmaplant and Promedic - on Tuesday, both of which have their headquarters in Bucharest.
Company officials expect the company''s current market share to grow by 15% following the acquisitions.
Over the next 2-3 years, the contribution of the two new firms to Terapia''s overall turnover is expected to be 12.3 million euros (15 million dollars).
"Terapia plans to consolidate its position on the Romanian market and on the key export markets. We are confident the acquisition of the two companies will give a clear boost to revenues and the company''s portfolio, which will be efficiently promoted through complex marketing programmes. The acquisition of the two companies is part of our policy to generate strong organic growth, and by adding the products of the two companies to our portfolio we expect growth of around 5.7 million euros (7 million dollars) for the year 2005, on top of what we had projected," Stephen R. Stead, general manager of Terapia, told ZF Transilvania.
Terapia is owned by the US investment fund Advent International, which last year purchased 95% in the company in a deal worth 45 million dollars (37.5 million euros).
Pharmaplant and Promedic are both private Romanian companies, with cumulated turnover of over 5 million euros (6.2 million dollars) and close to 100 employees.
Through the recent acquisition Terapia has gained skilled staff and new production facilities, as well as a portfolio complementary to its own. This will translate into a series of new pharmaceutical products (syrup, and ophthalmologic, nasal and eye drops) and the expansion of the portfolio into therapeutic areas (central nervous system, cardiovascular system, diabetes).
The integration of the two companies will be finalised over the next few months and will also affect the commercial, IT, communication, human resources and financial areas. Initially, the two production facilities in Bucharest will be run as separate departments, while the production in Cluj will continue as it is at the moment.
Terapia ranks second among Romanian drug makers, last year turning over 42 million euros (51.5 million dollars). In the first quarter of this year, the company''s turnover reached 27 million euros (33 million dollars).
It is currently employing 800 people and is the largest pharmaceutical exporter. Domestic sales accounted for 84% in the total in 2004, followed by the sales to Russia (11%), Ukraine (2%), Poland (1%) and other countries (2%).
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