Antibiotice’s initial profit estimate missed by one third

The producer launched a modernization and restructuring strategy in July, to include the laying off of 100 employees.

“The company is now financially balanced, despite market conditions which are different from 2007. Considering our company’s plan to cut costs, I estimate we will improve our profitability rate by year-end,” said Coca Cascaval, General Manager. Cascaval added that the results of this plan indicate a 15 percent drop in fuel expenses, 12 percent utilities, and 4 percent salaries.

Antibiotice Iasi posted a gross profit worth RON 20.1 mln (€5.4 mln) in the first three quarters of 2008, compared to the RON 26.7 mln (€8 mln) in the first nine months of 2007, while the net profit plunged 27 percent, down to RON 16.9 mln (€4.6 mln).

According to company estimates, if the prices of medications had increased according to the evolution of the exchange rate, the producer’s gross profit would have amounted to RON 30.4 mln (€8.2 mln).

The fact that the Ministry of Health did not bring prices up to date also affected the company’s turnover, which rose 3.3 percent instead of an estimated 10 percent.

Antibiotice ranks ninth on the local pharmaceutical market, according to the Cegedim market research company, with a 2.9 percent market share and 1,600 employees, one of the largest employers in the field.