Richter doubles its pharma distribution business in Romania

In this field, turnover in the first half of the year increased by 84.7 percent, to €67.8 million, from €36.7 million in H1 2007.

Last fall, the company purchased local PharmaFarm Cluj distributor, following earlier acquisitions of several smaller distributors. Romania is the only country where Gedeon Richter has distribution operations. In Hungary, the company sold its 50 percent share in Medimpex distributor.

In Romania, the company owns a pharmaceutical plant in the central city of Targu Mures, two distribution networks, PharmaFarm Cluj and Dita Export Import, and the Gedeon Richter Farmacia retail chain, with 165 pharmacies. It also owns the Armedica Trading development strategy company and 50 percent of Westpharma IT services company.

Gedeon Richter drug sales amounted to €12.6 million, 8.6 percent higher year-on-year, according to the company’s financial results published on the Budapest Stock Exchange, where it is listed.

Romania is the second-largest market for the Hungarian company in terms of sales volume, after Russia, where the company posted €98.2 million in H1 turnover, 6.3 percent higher than in the first half of 2007. On the Hungarian market, business declined 41 percent, to €58.6 million, in the same period.

Gedeon Richter is the 16th largest producer on the Romanian market, worth some €1.85 billion, according to Cegedim research company. Its main competitors include GlaxoSmithKline, Terapia Ranbaxy and Zentiva.