Ovidiu Buluc, the majority shareholder in drug distributor Farmexim, says he is not interested in selling the company, despite the over 55m-euro offer he received from Celesio, the biggest European player on the market.
"We've had offers. We were in advanced talks with Celesio, but did not reach an agreement. They failed to convince me about the value, or what they would bring to Farmexim. I am not interested in the money. What I want is to see this firm grow and be better than the competition. I can get money from banks," Ovidiu Buluc told ZF.
So far, the foreign players that have bought domestic distributors are Germany's ANZAG, which took over Farmexpert, and Hungary's Gedeon Richter group, which became a majority shareholder in Dita and PharmaFarm. "I don't believe it is possible for any other foreign player to arrive in 2008. Should the macroeconomic situation become worse, companies' profit will be seriously hurt, and it is profit that foreigners seek. In addition, prices will also witness significant increases, so when they buy, they will buy at very high prices," explained Buluc.
In 2010-2011, the company will consider partial floatation in Bucharest depending on market conditions and the company's development. "In two years, a distributor's value can double, and between 2010 and 2011 Farmexim's value could go beyond 100m euros. Our assets alone are worth tens of millions of euros," added Buluc.
Farmexim's turnover is expected to exceed 350m euros during the above-mentioned period and estimates point to 10-12% market share, which would secure the company a comfortable position among the top three players.
The company last year generated turnover worth around 150m euros, above 2006 figures. The profit rate revolved around 2.5-3%, according to estimates, a level that is forecast to remain constant this year.
This year, Farmexim has budgeted 25% higher turnover. As regards January, Farmexim representative expects sales to account for 90% of the level reached in December. "We're counting on a 30% increase in January 2008 against the same month last year. (...)," Buluc added.
The distributor currently has 475 employees, but targets 550 employees by yearend.
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