Terapia Ranbaxy in Consumer Health (Romania)

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TERAPIA RANBAXY INCONSUMER HEALTH (ROMANIA)

Euromonitor International

July 2013

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T E R A P I A R A N B A X Y I N C O N S U M E R H E A L T H ( R O M A N I A ) P a s s p o r t I

E u r o m o n i t o r I n t e r n a t i o n a l

LIST OF CONTENTS AND TABLESStrategic Direction ........................................................................................................ ................ 1

Key Facts ..................................................................................................................................... 1Summary 1 Terapia Ranbaxy: Key Facts ........................................................................ 1Summary 2 Terapia Ranbaxy: Operational Indicators ..................................................... 1

Company Background ....................................................... ........................................................... 1Production .............................................................. ................................................................. ..... 2Competitive Positioning ........................................................................................................... ..... 2

Summary 3 Terapia Ranbaxy: Competitive Position 2012 .............................................. 2




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T E R A P I A R A N B A X Y I N C O N S U M E R H E A L T H ( R O M A N I A ) P a s s p o r t 1


TERAPIA RANBAXY

STRATEGIC DIRECTION The acquisition of Terapia by Indian company Ranbaxy in 2006 was carried out to enable the

Indian company easy access into the EU, with Romania becoming a Member State in 2007.

The new company operates under the trade name Terapia Ranbaxy. Antibiotics, drugs for the

respiratory system and natural products will represent its main focus for further development,

in addition to its existing brands. Investment in packaging and brand promotion represent

another priority for the company, which considers the manufacturing and sales platforms in

Romania ready to support sales across Europe. The sales force was doubled since the

takeover by Ranbaxy, and is supported by capacity expansion and modernisation.

KEY FACTS

Summary 1 Terapia Ranbaxy: Key Facts

Full name of company: Terapia Ranbaxy

Address: 124, Fabricii Street, Cluj-Napoca, Romania

Tel: +40 (264) 501 500

Fax: +40 (264) 415 097

www: www.terapia-ranbaxy.ro

Activities: Manufacturer of drugs

Source: Euromonitor International from company reports, company research, trade press, trade sources

Summary 2 Terapia Ranbaxy: Operational Indicators

2010 2011

Net sales RON376.2 million RON421 million

Net profit RON95.7 million RON109.6 million

Number of employees 677 677

Source: Euromonitor International from company reports, company research, trade press, trade sources

COMPANY BACKGROUNDAfter the exit of the US financial group Advent International, Terapia was purchased at the

beginning of 2006 by the Indian company Ranbaxy Laboratories Ltd, following a deal

estimated at US$324 million. Through this acquisition, the new company became the largest

manufacturer of generics in Romania. Terapia was the first domestic drug producer to obtain

GMP certification.

Terapia has made several changes to its distribution, in that it has drastically reduced the

number of distributors from hundreds to only seven at the time of writing, in an effort to

develop special relationships with regards to payment terms and market information. At the

same time, the company developed its own distribution network, operated by Terapia




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Distributie, which is responsible for around 70% of domestic sales. Sales are supported by a

strong team of medical representatives, which cover Romanias main cities.

At the beginning of 2010, the company announced the finalisation of a warehouse in Apahida,

Cluj county, which increased the storage capacity of its own products and also added

warehouse services for Ranbaxy products. Currently, it has a presence in the followingTherapeutic Segments: Cardiovascular, Anti-infectives, Central Nervous System (CNS),

Gastrointestinal and Musculoskeletal

PRODUCTION Terapia has one manufacturing facility in Romania, located in Cluj-Napoca. Following an

important investment, the company completed the modernisation of its injectable medicines

section and obtained GMP certification. In 2004 it also began a 3-year investment programme

for environmental protection, which amounted to 8 million, with the main objective being to

modernise its entire production facility, which stimulated sales growth and the launch of new

products.

Terapia, through Advent International, in 2005 acquired two companies in Bucharest -

Promedic and Pharmaplant Biogalenica - which became Terapias liquid medicines division.

At the end of the review period, the new owner, Ranbaxy Laboratories, was negotiating the

sale of this division. Rumours suggested that the purchaser could be an Indian company

aiming to sell liquid medicines or syrups in Romania and Europe.

Terapia is one of the main exporters of drugs. Encouraged by its excellent results in Russia,

where the company sells about 16% of its drugs output in 2012, Terapia began operations in

Poland in 2004 through a representative to coordinate and run marketing activities. The

company expects Faringosept, a pharyngeal remedy popular in foreign markets, to be at least

as successful in the EU as in Russia. Terapia also launched Aspacardin in foreign markets.

Terapia operates a modern processing line for injectables. The lines capacity is one of the

companys strengths, and it expects to sell some of its products in India. The fact that Terapiais owned by Ranbaxy makes it the strongest domestic exporter, using Ranbaxys subsidiaries

across the world

COMPETITIVE POSITIONING Terapia Ranbaxys growth is the result of the expansion of its portfolio, especially of consumer

health products, and the development of its marketing and sales department. At the end of the

review period, Terapia owned 20 brands of consumer health medicines, mainly in analgesics,

cough, cold and allergy (hay fever) remedies and digestive remedies.

The company enjoys an important position in consumer health, in which it was ranked 14th,

with a 2% value share in 2012. This share is expected to grow in the future, given that

Ranbaxy is involved in the manufacture and sale of natural herbal/traditional products.

According to Forbes, Terapia Ranbaxy ranked ninth among the top-20 players in this market

with sales of 439 million.

Summary 3 Terapia Ranbaxy: Competitive Position 2012

Product type Value share Rank

Analgesics 3.9% 7

Cough, cold and allergy (hayfever) remedies

1.6% 14




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Vitamins and dietarysupplements

1.8% 10

Source: Euromonitor International from company reports, company research, trade press, trade sources, tradeinterviews


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Terapia Ranbaxy in Consumer Health (Romania)

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