Antibiotice – increases above the Romanian pharmaceutical market in 2015

Although for the first time in the recent years, the total market recorded a decrease both in value and quantity in 2015, Antibiotice managed to obtain the most significant increase among the first 15 ranked companies:

• +11.62% in terms of value (compared to the decrease of 4.74% recorded on the total market), being ranked thirteenth in the total market, with a market share of 2.45%,
• +2.1% in terms of quantity (compared to the decrease in consumption of -0.87% recorded on the total market), ranking fourth in the top of the companies on the Romanian generic and OTC market, advancing one position compared to 2014. Antibiotice provides also 5.56% of the total market volumes.

As a share in the Antibiotice sale structure, the retail segment (sales in pharmacies) represents the main sales channel (75 % in value terms). Thus, in 2015, the retail segment recorded a positive evolution in value terms (+10.81%), compared to the decrease of -5.73% recorded by the market.

Value increase on the retail market has been possible mainly because of the higher evolution in the sales of medicines from the following therapeutical classes, each generating increases of more than 10%:

• Systemic use antiinfectives (higher by +10.13 %)
• Dermatological preparations (higher by +16.60 %);
• Digestive tract (higher by +14.44%);
• Cardiovascular system (higher by +11.04%).

Antibiotice quantitative sales on the retail segment rose by +3.43% above the market level (compared to the decrease of -0.98% recorded on the market). As regards the hospital channel, Antibiotice medicines recorded a value increase of +14.11% in 2015 as compared to 2014, while the increase on the market was only +2.72%. Value increase on the hospital market (generics and OTCs) was especially influenced by the positive evolution of the anti-infectives sales (+16.10%).
With a 18.8% market share (10.6% higher than in 2014), Antibiotice is a leader on the market of generics and OTCs sold in the Romanian hospitals).
In 2015, our company portofolio was enriched with 5 new products from therapeutical classes on which Antibiotice wants to consolidate its position in the coming years: Antiinfectives class, Dermatological Preparation class, Genitourinary class.

Continuity in top positions
In 2015, optimal consolidation strategies have been identified, allowing the company to consolidate its position on the market shares where it is recognized:
o the first place on the ointment segment – market share of 27.7%;
o the first place on the suppository segment – market share of 42.44 %;
o the first place on the injectable powder segment – market share of 75.38 %.

”Given that prices of generic medicines were reduced by 20 % on average from the beginning of July 2015 and the clawback tax for Antibiotice represented 11.1% of revenues obtained on the domestic market, our company fulfilled it budgetary indicators. Thus, we succeeded in increasing the revenues from sales (ATB output) with a percentage compared to the budgeted figures and in applying a prudent policy regarding the adjustments at the level of the retail price customers, of about 5000 pharmacies. Without these adjutments, our gross profit would have decreased at the level of LEI 42 million” declared Ioan Nani, Antibiotice CEO.
Objectives for 2015 took into account the implementation of the budget approved by the Management Board and General Meeting of Shareholders, in this manner:

Destocking the pharmacies and sales channels (distribution, hospital, retail) was also taken in consideration.

Advance of 7% on foreign markets
Antibiotice ended 2015 with an export turnover amounting to EUR 20.5 million, 7% higher than in 2014. Revenues form sales increased also by about 45% as compare to the previous year. The increase was driven primarily by the positive evolution in the sales of Nystatin, the active ingredient which maintains Antibiotice as a world leader for three consecutive years.

North america is the main market in 2015 for the finished products, mainly by exports of injectable products on the US market, Antibiotice having 6 registered products in this country. Antibiotice finished products were also exported in Europe, Middle East and Russia, the former CIS countries.

The main finished products exported by Antibiotice belong to the antiinfectives class, for which our company is recognized both nationally and globally. Increases were also recorded in the sales of medicines belonging to the cardiovascular, dermatological preparations and digestive tract classes.

Growth strategy in the international markets aims at promoting the products both on the retail segment (sales in pharmacies) and on the hospital segment.