The Romanian pharmaceutical industry reached a turnover of 66.6 billion lei last year, and profits increased by almost 20%, this year being estimated a maximum business record of about 70 billion lei, in the context of the pandemic, shows a KeysFin analysis, which draws attention to the fact that Romania is a net importer of drugs and that the trade deficit has reached the highest level in history.
Thus, the turnover of Romanian producers, distributors and pharmacies increased by 2.6% compared to 2019 and by over 100% compared to the level of turnover registered in 2010, thus reaching 66.6 billion lei in the year 2020, according to the information available from the Ministry of Public Finance.
Moreover, it is estimated that the pharmaceutical industry will continue to grow this year to the threshold of 70 billion lei in the context of inflationary pressures in the economy, as well as the lifting of restrictive measures against COVID-19 that have temporarily affected drug production. in 2020.
“KeysFin’s analysis of the evolution of the pharma market in 2020 shows that the local pharmaceutical industry has reached an all-time high. Paradoxically, the fight against COVID-19 contributed to the health of the economy, due to the contribution to the state budget, but also to the ecosystem supported by these companies. This sector still has development potential, in the context in which the pandemic did not pass, and the Romanians understood that prevention is needed, not just treatment. We estimate for 2021 an increase of the supplements subcategory, with the maintenance of this trend in the near future “, said Roxana Popescu, Managing Director of KeysFin, one of the most important providers of business information solutions in Romania.
Record profits during the pandemic
In 2020, the net result of pharma companies (Net profit minus Net loss) increased by almost 19% compared to the previous year and by over 346% compared to the level of 2010, thus reaching the highest level in history, respectively 3, 2 billion lei.
At the opposite pole, however, KeysFin analysts point to a worrying evolution of outstanding payments in 2020, where there was a doubling (an advance of almost 100%), reaching 2.6 billion lei. Thus, almost 50% of these were outstanding invoices of pharma companies to suppliers.
Top local pharma companies
The local production of pharmaceuticals (CAEN code 2110: Manufacture of basic pharmaceutical products and CAEN code 2120: Manufacture of pharmaceutical preparations) is still lead by the company TERAPIA S.A. which, in 2020, recorded a turnover of 791 million lei and a net result of almost 192 million lei, followed by the companies ZENTIVA S.A. (with business of 558 million lei and a net result of approximately 66 million lei) and SANDOZ S.R.L. (with business of 427 million lei and a net result of over 10 million lei).
Furthermore, the ranking is completed by ANTIBIOTICE SA, the only company in the Top 5 that registered an annual decrease, respectively of -12.7% (with business of 341 million lei and a net result of 26 million lei) and the company BIOFARM SA, which registered the largest annual growth in the Top 5 (+ 10.8%), thus realizing business of 216 million lei and a net result of 54 million lei.
Regarding local drug distributors (CAEN code 4646: Wholesale of pharmaceutical products), the leader of 2020 was FILDAS TRADING S.R.L. (with a turnover of 4.3 billion lei, respectively an annual increase of 1%), followed by the company MEDIPLUS EXIM S.R.L. (with a turnover of 4 billion lei and the lowest annual advance in the Top 5, respectively + 0.2%).
Next, the top is completed by the companies HEALTHCARE ROMANIA S.R.L. (with business of 3.8 billion lei), FARMEXIM S.A. (with business of 2.5 billion lei) and SANOFI ROMANIA S.R.L. (which recorded a turnover of 1.3 billion lei and the largest annual advance in the Top 5, respectively + 19%).
In the ranking of pharmacy chains (CAEN code 4773: Retail sale of pharmaceutical products in specialized stores), according to the turnover registered in 2020, on the first place is the company SENSIBLU SRL, with a turnover of approximately 2 billion lei and a growth of 6% compared to the previous year, followed by DONA (SIEPCOFARSA), with business of approximately 1 billion lei and the largest annual decrease in the Top 5 (-2.9%) and HELP NET FARMA SA, with business of 979 million lei and an annual increase of 21.6%. The next ranked are FARMACIA TEI SRL, with 448 million lei (the highest annual advance in the Top 5, of 26.8%) and CATENA HYGEIA SRL, with 704 million lei and an annual decrease of -2.6% of the total .
However, if group-level data are taken into account, CATENA, through its more than 100 separate entities, remains the market leader.
According to data provided by the Ministry of Public Finance, by 2020, the financial data of 161 manufacturers of medicines and pharmaceuticals and over 5,800 wholesalers and retailers of these product categories were available.
Romania, net importer of medicines
According to the National Institute of Statistics, the value of international trade in medicines in 2020 (Exports plus Imports) increased by 6% compared to 2019 and by 59% compared to 2010, reaching 3.8 billion euros.
Also, in 2020, the trade deficit in medicines reached the highest level in history, thus exceeding for the first time the threshold of 2 billion euros, by 6.2% more much compared to 2019 and 68% more than in 2010.
Note: The KeysFin analysis is based on annual financial data, unadjusted, aggregated, reported by companies to the Ministry of Finance (at the end of the period) and whose main field of activity is one of the CANE codes: 2110 – Manufacture of basic pharmaceutical products, 2120 – Manufacture pharmaceutical preparations (PRODUCTION), 4646 – Wholesale of pharmaceutical goods (DISTRIBUTION) and 4773 – Retail sale of pharmaceutical goods in specialized stores (PHARMACIES). All figures are expressed in lei, and the data were extracted at the end of June 2021.
Translated from Romanian by Service For Life S.R.L.