Zentiva to focus on profit rather than market share in 2008

“We are targeting increased company profitability. The market share is nice, but you cannot buy anything with it. The market share can be very important or interesting if you are preparing a company for sale. However we are not here to sell, but to stay long-term,” Belcik said.

Belcik took over the management of Zentiva Romania last July after former Country Manager, Mariana Wencz, resigned ahead of announcing disappointing financial results.

The company’s main problem was a lack of financial discipline. Local market payment delays exceeded 280 days, which according to international accounting standards required some provisions affecting quarterly financial results. The company is listed on the Bucharest, Prague and London bourses.

Belcik said that in the last quarter of 2007 that the situation has improved significantly. Payments are made within some 150 days, which Belcik considers to be “an acceptable standard for Romania.” In countries such as Hungary, Poland and Bulgaria, payments are made within 15 to 90 days.

Zentiva’s Manager believes that the Romanian market is sexy and exciting due to its spectacular growth, but also spoke of its major problems, such as legislation, which discriminates between local producers and importers.

The company will continue to restructure its portfolio of drugs in Bucharest, but Belcik admits that he had not anticipated the Romanians attachment to national products. Zentiva owns the Algocalmin, Antinevralgic and Dicarbocalm brands, with sales worth millions of euro. Algocalmin is the best-sold over-the-counter drug, at over €14 million.