A&D Pharma targets acquisition on the sales&marketing segment

“This is a target that we set since the 2006 [London Stock Exchange] listing; we have ongoing discussions and hope to have something specific in a few months. Much also depends on the economic environment, as it is possible that the context is another when we make the deal,” the company’s General Manager, Robert Popescu, told Business Standard.

To secure profit margins, A&D Pharma is reorganizing its Mediplus distribution division. Furthermore, the company has opened a subsidiary in Hungary, following a Greenfield investment, and plans an acquisition in Southeastern Europe. “If we do go regional it will be by acquisitions,” Popescu added.
Three of the company founders own the Arishop pharma sales&marketing company in Bulgaria. “It is possible that we will sign a deal with them. Or not,” the manager added.

The profitability of sales&marketing operations, up to 15 percent, is higher compared to the distribution business, but is less predictable.

A&D Pharma is leader on both the local distribution market, with Mediplus, and the retail market, with the Sensiblu pharmacy chain. In the first nine months of 2008, the company registered a 25 percent increase in net non-audited sales, up to €376.9 million.