Publication date: Language: English

December 2007

makers from Central and Eastern Europe 2007

Business strategies of pharma

Acquisition prospects and development forecasts

A word from PMR’s Head Pharmaceutical Analyst

Central and Eastern Europe has been a field of intensive merger and acquisition activity over the last few years. One example is the recent merger of two regional powers: Gedeon Richter and Polpharma, which are likely to become the largest player in this part of Europe. Not only will the deal strengthen their already strong positions on their domestic markets - Hungary and Poland – but it will affect their operations on foreign markets, especially Russia, due to Richter's acquisition of Akrihin, controlled by Polpharma.

Regional drug makers such as Krka, Zentiva and Sanitas, as well as the abovementioned two, offer benefits such as greater economies of scale, low manufacturing costs and high margin export trade potential, not to mention large scale penetration of a healthily growing marketplace to investors.

On the other hand, emerging markets of the CEE region still offer potential investors very attractive acquisition targets that should increasingly come under the gaze of the foreign investors in the coming years, such as Antibiotice in Romania; Pharmstandart, Otechesvennye Lekarstva and Pharm-Centr in Russia; and Darnitsa, Arterium and Farmak in Ukraine.

Joanna Swatowska-Rybak, Head Pharmaceutical Market Analyst

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Major regional producers, which

have yet to fall into the hands of larger rivals,

include Krka, Sanitas and Zentiva.

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Report description

The report Business strategies of pharma makers from Central and Eastern Europe 2007 from PMR profiles the most prospective indigenous pharmaceutical manufacturers in Central and Eastern European (CEE) countries. As potential acquisition targets for both multinationals and regional players, a critical examination of their performance and growth strategies, from operations to branding, provides invaluable intelligence necessary in a rapidly developing market.

These companies including Gedeon Richter, Krka, Polpharma, Sanitas and Zentiva are on the brink of next phase development, either through acquisition of smaller firms or merger with larger organisations. With a dynamically changing market regionally and globally, this report performs essential analysis on their various strengths, weaknesses, opportunities and threats.

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Producers in EU’s newest markets, such as Russia, Ukraine, and ex-Soviet bloc countries, are catching the eye.

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Key sections

Executive summary

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Macro-economic overview of the region

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Summary of report .

Central Europe

Eastern Balkans

Baltic States

Russia.

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In the short term, perhaps the

strongest impact will be made

by competitors from India and China.

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Summary of market development

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Description of market situation, including:

Overviews of pharmaceutical markets in Central and Eastern European markets:

Belarus

Bulgaria

Croatia

Czech Republic

Hungary

Lithuania, Latvia and Estonia

Poland

Romania

Russia

Serbia

Slovakia

Slovenia

Ukraine

Development of generic pharmaceuticals

Consolidation activity in CEE

Emergence of branded generics.

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In 2007, there has been an increased activity of foreign players in Romania and Bulgaria.

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Indigenous Central and Eastern European pharmaceutical manufacturers’ strategies

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Profile of five leading companies, including:

Polpharma

Zentiva

Gedeon Richter

Krka

Sanitas.

Rationale and comparative analysis

SWOT analysis, including:

Operating strategies

Recent acquisitions

Recent divestments

Brand strategies

Latest financial release

Licensing agreements

Joint ventures

Performance history

Company forecasts.

Russia’s drug market is

expected to double by 2020.

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Potential acquisition targets

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Potential predators

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List of potential acquisitions targets for indigenous Central and Eastern European playersRationale and analysis in the most promising countries of Central and Eastern Europe:

Romania

Russia

Ukraine

Belarus.

List of potential predators of the indigenous Central and Eastern European playersRationale and analysis of particular players:

Actavis

GlaxoSmithKline

Novartis

Ranbaxy

Sanofi-Aventis

Stada

Teva.

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Consolidation continues to be a major trend for CEE market development.

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An essential read for:

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top managers, strategic planners and executives of companies considering entry or active in or interested in entering the Central and Eastern European market

companies engaged in manufacturing, distributing and importing pharmaceuticals

key decision makers and consultants involved in the healthcare industry

multinational giants interested in acquisition within Central and Eastern Europe and potential competitors in the region

regional players investigating successful growth strategies of their competitors or looking to be acquired.

This report is an invaluable resource for any company considering merger and acquisitions in the Central and Eastern European healthcare and pharmaceuticals market.

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Selected PMR clients

ratiopharm

071129

Questions about ordering? Contact our sales department:

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fax /48/ 12 618 90 08

e-mail: sales@pmrcorporate.com

www.pmrpublications.com

About PMR

PMR Publications provides reliable market intelligence for business professionals interested in Central and Eastern European countries. Publications by PMR analyse the business climate in the region, in particular in the construction, retail, IT, telecommunications and pharmaceutical sectors. PMR Publications offers both free and paid subscription newsletters, internet news portals and in-depth reports.

To find out more about Poland and Central Eastern European countries please visit www.polishmarket.com and www.ceemarket.com as well as the regional and national sector portals dedicated to construction (www.constructionpoland.com, www.constructionrussia.com), IT and telecom (www.itandtelecompoland.com, www.ictruss ia.com), retai l (www.retailpoland.com, www.ceeretail.com, www.russiaretail.com) and pharma (www.pharmapoland.com).

PMR Publications is a division of PMR (www.pmrcorporate.com), a publishing, consulting and market research company providing information, advice and services to international businesses interested in Central and Eastern Europe. With highly skilled staff, top ranked web sites and over ten years of experience, PMR is one of the largest companies of its type in the region.

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Acquisition prospects and development forecasts

Business strategies of pharma makers from Central and Eastern Europe 2007Publication date: December 2007Language: English

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