Pharmaceutical companies shift their strategies to increase profits

A first signal came from Czech company Zentiva, which saw its profit affected last year by the long waiting payment periods common to the Romanian market, three to four times longer than those in other Central European countries. Zentiva, listed on several European stock markets, including Bucharest’s Stock Exchange (BVB), had to make special provisions to cover this debt. To increase profit, the company re-negotiated payment terms with distributors, which led to a 5 percent loss in market share last year. However, the company remains focused on increasing profitability.

Roche Romania, the local subsidiary of Swiss producer Hoffmann la Roche, is making up for long payment periods by taking out permanent loans from the mother company, according to Roche’s General Manager, Dan Zamonea.

While importers had lower earnings, due to the depreciation of the leu, local producers have posted significant profits. State-owned Antibiotice Iasi registered 29 percent annual growth in profit, up to €9.21 million, while Biofarm Bucharest’s profit rose 6.1 percent, to €4 mln.