Medicine market growth to shrink by half in 2010 Pharmaceutical market growth in 2010 may shrink by half compared with last year. Cheaper generic medicines will continue to be placed on the market. Intercompany debts will increase at a quick pace. The National Health Insurance Fund (NHIF) and the health ministry will delay payments to drug wholesalers. Companies may start turning down orders because of liquidity problems, LaRoche Bulgaria's general manager Maria Trifonova commented for the Pari daily. As long as healthcare is managed in a transparent and professional manner, I do not expect a crisis on this market in Bulgaria, Novartis Pharma's regional manager Stuart Merrifield said. According to him the main issue is medicine pricing. The current reference system allows comparing Bulgaria with countries where the local currency is not pegged to the euro, which turns pricing into a lottery. As a result, some innovative drugs were pulled out of the Bulgarian market and that may continue if no adequate measures are taken. In 2009 medicine prices in Bulgaria were cut to the lowest levels in Europe under the pressure of institutions. Nevertheless, the market of prescription drugs grew to EUR 857 million, which dispelled the concerns about a drastic slump as a result of the crisis, Maria Trifonova pointed out. The pharmacy market amounted to EUR 710 million, hospitals spent another EUR 147 million on medications, IMS Health data show. It is seen from the data that the hospital market in Bulgaria is extremely limited and insufficiently developed, Trifonova said. The new reimbursement list reduced NHIF's spending on medicines in 2009. The difference paid by patients for NHIF-reimbursed drugs fell from BGN 218 million in 2008 to BGN 193 million last year.
Source: Pari (15.01.2010)

Bulgarian drug distributor Sopharma Trading, part of Sopharma, has rounded off 2009 with a handsome over 8% increase in sales to north of BGN 355 million, the company said in a filing with the Bulgarian Stock exchange (BSE) and the Financial Supervision Commission (FSC). The pharmaceuticals sector has seen some of the mildest pressure from the economic downturn and most players are pulling off better earnings. Sopharma scored a 12% rise in 2009 turnover. The group kicked off a sweeping restructuring programme, planning to merge the operations of Sopharma Logistics and Sopharma Trading. The deal needs the nod of the financial regulator before the two companies shareholders could vote on the proposal. The move forms part of a major shake-up in the making at Sopharma, whose executive director Ognyan Donev in mid-2009 said three related entities will be merged into the group.
Source: Dnevnik (18.01.2010)

Bulgarian exporters see light at the end of the tunnel Analysts’ forecasts that exporters will be the first Bulgarian companies to see the first green shoots of recovery came true as almost all earnings reports displayed a rosier picture. The uptick was attributed to the revival in European economies, with Bulgarian exporters shipping 80% of their produce to the EU. The improvement was also backed by entries in new, non-EU markets. Drug maker Sopharma on Friday posted a 73% increase in its annual profit as sales surged by 12% year-on-year. The company pegged the good figures on better exports and cost optimisation. Exports saw a 16% rise helped by hefty sales in Russia and Ukraine. The company made gains on new markets such as Turkey and Serbia. Cable maker Emka boosted fourth-quarter sales by almost 20% year-on-year to just under BGN 11 million. And while turnover shrank by 36% on the year, a sharp cutback in operating costs propped up profit by 88% to BGN 1.34 million. Lesoplast, the timber products manufacturer, which sells approximately 77% of its output abroad, saw oversees sales swell by more than 27% by volume and more than 15% by value offsetting a steep decline on domestic sales. Exports were aided by a rebounding Italian market. Other Bulgarian companies selling on foreign markets are enjoying similar gains. Miner Kaolin compensated in the second and the third quarter a much deeper drop reported in the first three months of the year. The ceramic market almost regained its share in the company’s revenue structure largely thanks to an expansion into the Middle East.
Source: Dnevnik (01.02.2010)

Bulgarian drug maker Sopharma saw its sales grow 11% year-on-year in February 2010, the firm said in a filing to the Bulgarian Stock Exchange-Sofia where it is listed. Exporst were the main growth engine as the monthly sales abroad rose by 14% on the year while the domestic market sales ticked up by just 1%. Sopharma has registered a 13% growth in exports since the start of the year while sales in Bulgaria have marked a 2% rise over the same period. Th pharmaceutical company closed 2009 with 70% year-on-year rise in net profit on a turnover of BGN 209 million. The sales figure represented a growth of 12% on the year, also achieved on the back of strong sales abroad. Exports for 2009 were 16% higher than in 2008 while sales in Bulgaria grew by 4% on the year. The international markets where the company's sales marked a double-digit growth were The Balkan countries and Turkey, followed by countries in the EU and Asia. Sales growth in Russia and the USA was more modest.
Source: Dnevnik (08.03.2010)

Pharmaceutical maker Sopharma's sales rose 11% in February, year on year, the company said. Exports jumped 14%, domestic sales edged up 1%. The total sales for the first two months of 2010 increased 10%, driven by 14-percent growth in exports. In 2009 Sopharma posted a 10-percent jump in net sales income to BGN 520.7 million on a consolidated basis. Domestic sales accounted for 75% of the result. Profit surged more than 2.5-fold to BGN 45.8 million. Expenses went up 4%, year on year, to BGN 472.8 million.
Source: Pari (08.03.2010)

Pharmaceuticals company Actavis has sold its Bulgarian distributor Higia EAD to a private investor. The buyer is Rossica Veselinova Velikova, aged 31. The sale is part of Actavis efforts to focus on its core business - development, production and sale of generic drugs. It will continue to work with its distributor, the company said in a statement. Two independent sources told Dnevnik that the real buyer is Veselin Mareshki, a businessman from Varna, owner of Varnafarm holding, a chain of pharmacies. When asked by Dnevnik, Mareshki denied the information. The vertical integration in the pharmaceuticals sector in Bulgaria is forbidden by law on competition issues. Thus, Mareshki would not be allowed to buy Higia, but in theory, the deal could be closed through another party.
Source: Dnevnik (09.03.2010)

Flotation on the Warsaw Stock Exchange is much cheaper than listing an issue on the Bulgarian Stock Exchange (BSE), Pari daily's calculations show. The results were a big surprise for professional investors, who voiced their dismay at the big fee differences. Pari's calculations concern only the fees to the exchanges and the depositories and do not include the additional prospectus and consultancy costs. The Bulgarian exchange operator charges 0.06% of the market value of a given issue for admission for trade on the official market of equities. To trade on Warsaw's main list market, a company has to pay 0.03% of the issue value. The fees charged by the two depositories are miles apart. Poland's National Depository for Securities has a fixed fee of BLN 20,000 (BGN 10,133) for opening a formal account. The Bulgarian Central Depository charges BGN 150 to 50,000, depending on the issue par value. Let us take the following example. A Bulgarian company with a BGN 40 million issue will have to pay BGN 7,900 to the Central Depository and BGN 24,000 to the BSE to get listed on the official market in Bulgaria. To be admitted to Warsaw's main list, the same company will have to pay BGN 12,000 to the exchange operator and BGN 10,133 to the depository. The total fee is BGN 20,113, i.e. 30% cheaper than flotation in Bulgaria. It is a huge fee difference, given that the institutions in Bulgaria and Poland are supposed to carry out identical activities, Elana Trading's Tsvetoslav Tsachev commented. According to institutional investors, the high rates in Bulgaria are an unpleasant surprise, as they are yet another obstacle to the development of the capital market. Unfortunately, the higher fees for registration of new issues confirm the theory that the Bulgarian operator hampers the listing of new companies on the Bulgarian Stock Exchange, brokers pointed out. So far two Bulgarian companies have expressed intentions to get listed on the Warsaw Stock Exchange: Sopharma and Intercapital Property Development REIT. We are aware that listing in Warsaw will not cost us much, the property fund told the Pari daily. At the same time flotation in Poland has many advantages for Bulgarian companies. It gives them the opportunity to raise financing on one more capital market. Liquidity in Poland is much higher than in Bulgaria and there are many foreign investors. In 2009 the Warsaw Stock Exchange emerged as Europe's leader with 38 initial public offerings with a total value of EUR 1.59 million. SWIFT tests start next week In the middle of February Bulgaria's UniCredit Bulbank signed a custodian service agreement with Poland's National Depository, clearing the way for Bulgarian companies to get listed in Warsaw. Once the Bulgarian Central Depository completes the necessary SWIFT tests, which are starting next week, a direct connection will be established between the two institutions.
Source: Pari (12.03.2010)

More exporters gear for better performance in 2010 Another batch of Bulgarian exporters have sent out a new sign for recovery as they outlined their 2010 guidance. Drug maker Sopharma and lead and zinc smelter OZK said they expected sales to gain 15% and 20% this year, respectively. The pharmaceutical firm already rounded off a health 2009. Both companies pegged their optimism on continuous recovery of the European recovery and global markets. Sopharma forecast in its annual report last week that it would post zero growth for 2010 amid the still rickety global economic conditions. But yesterday the company unveiled an expected 37% rebound in sales for March alone and 20% for the entire quarter compared with the same period of 2009. The company also updated its full-year outlook, seeing a 12% to 15% increase in sales on an annual basis. The upbeat forecast is backed by a strong performance on export markets, which generated a staggering 83% year-on-year rise in March. Exports picked up 32% between January and March. Kardjali-based OZK says sales are poised to bounce by approximately 19.4% on an annual basis for 2010 to clear the BGN 150 million mark. The company said the increase hinges mostly on the rebound in lead and zinc prices on commodity exchanges. In physical terms, the company expects a slight contraction thanks largely to tough carbon emission targets. OZK is currently implementing a EUR 120 million investment to dial up its production capacity, while reducing its harmful emissions. The project had been stalled for two years under the former government due to bureaucratic bottleneck.
Source: Dnevnik (07.04.2010)

Pharmaceutical maker Sopharma's sales surged 37% in March, year on year, the company said. Domestic market sales edge up 2%, while exports jumped 83%. The 20-percent increase in sales income for the first quarter of 2010 shows that we are making efforts in the right direction, Sopharma executive director Ognyan Donev said. The good first-quarter performance allows the company to revise its full-year sales forecast, with income now seen rising 12 to 15%. Exports in January-March jumped 32%, domestic sales were 2% up.
Source: Pari (07.04.2010)

Central Cooperative Bank was the most liquid public company for Q1, BSE statistic revealed. Fuel distributor Petrol JSC is no longer among the leaders in terms of market capitalization and was replaced in top 3 by Arko Towers REIT. Leader is BTC, second ranks CiBank with total market capitalization of BGN 769,3 million. Total capitalization of the Bulgarian Stock Exchange fell 3,53% in Q1 to BGN 11,37 billion. 19 companies terminated registration on BSE, 8 of them are mutual funds – four funds managed by UBB Asset Management and four managed by DSK Asset Management.
Source: Pari (08.04.2010)

The Bulgarian pharmaceutical market shrugged off recession in 2009, pulling off a 7% increase over the twelve months, Kuncho Trifonov of research outfit IMS Bulgaria told reporters. Drug sales added up to EUR 878 million, with hospitals accounting for EUR 152 million and pharmacies for the balance of EUR 726 million. For 2010, sales are expected to gain a new 5%, taking the market total to BGN 1.8 billion. Trifonov attributed the improvement on the higher purchasing power of the population. The hospital market is not expected to stage an increase this year thanks to continuous pressure by the health ministry to rein in public spending. No growth is expected in terms of sold packages either as sales are increasingly shifting towards more expensive treatment. Bulgaria allocates to healthcare the smallest amount of public spending across the EU. In 2009, the National Health Insurance Fund (NHIF) reimbursed 36.6% of the price of medication. The figure is expected to shrink to 35% in 2010. This compares with an average of 85% for European countries.
Source: Dnevnik (12.04.2010)

Real estate investment trust (REIT) InterCapital Property Development is on track to become the first Bulgarian company to list in Poland after series of failed attempts by other aspirants. A portion of the shares issued through the REIT’s capital increase are expected to list on the Warsaw Stock Exchange (WSE) by the middle of this year, said InterCapital consultant Nicolay Mayster. After on April 14 securing approval by the Financial Supervision Commission (FSC) to augment its capital by 19.3 million shares, the company started translating its prospectus into the Polish language in order to submit it for registration with the Polish watchdog, Mayster said. The process is expected to span one or two months. InterCapital plans to offer on the WSE 6.5 million shares, which account for about a third of the new issue, but the number will be tailored to investor interest, according to Mayster. Aiming to expand its shareholder base, the company will offer the new shares also in London and Athens. The new shares come with an issue price of BGN 3, which means the company could raise almost BGN 58 million if all are subscribed. The bulk of the proceeds will be spent on launching and acquiring new projects. A smaller portion has been set aside for completion of the company’s Grand Borovets complex in the upscale ski resort of Borovets, near Sofia. Bulgarian blue-blooded drug maker Sopharma is also gunning for a floatation on the WSE but first it plans to update its prospectus, which got regulatory go-ahead more than a year ago. A number of other Bulgaria-listed firms are also eyeing debuting in Poland but some have put plans on the backburner to blunt the effect of the crisis.
Source: Dnevnik (16.04.2010)

Another two Bulgarian firms shipping the bulk of their produce abroad gave out signals they might be getting the upper hand over the market upheaval. Fertiliser maker Neochim and vet products maker Biovet expect to scale up sales by 50% and 10%, respectively, in 2010. Biovet was in positive territory also in 2009, whereas Neochim saw sales slide thanks to dampened demand and pressure from the January 2009 gas crisis. The low base enables the company to make forecasts about stronger growth this year. Recovering foreign demand and market expansion are expected to shore up both Biovet and Neochim for 2010.
Source: Dnevnik (26.04.2010)

Analysts’ forecasts that Bulgarian exporters will emerge from the market meltdown are coming true as show the latest batch of earnings reports filed with the Bulgarian Stock Exchange (BSE). Car battery maker Monbat, Stara Planina Hold and cigarette maker Sofia BT notched up hefty gains for the first quarter and expect to keep up the momentum through the months ahead. Upswing has already been seen at copper and lead smelter OZK, vet products maker Biovet, fertiliser maker Neochim and pharmaceuticals company Sopharma. Monbat even pulled off triple-digit increase on an annual basis, getting back to levels recorded before it was ravaged by the downturn in the second half of 2008. The firm netted non-consolidated sales of BGN 16.5 million for March, up 159% from the same month of last year. Pre-tax profit bulged by 134% year-on-year to BGN 1.78 million. Stara Planina Hold, one of Bulgaria’s major listed group with machine-building exporters in its portfolio, surpassed its own expectations, enjoying a 40% rise in consolidated sales in March and 3% for the quarter at BGN 14.3 million. The group predicts sales will surge by more than 39.5% between January and April compared with the same period of last year. Sofia BT improved sales and curbed its loss for the first quarter, with sales up 80% to slightly over BGN 20 million. The company attributed the surge on a shift to foreign markets.
Source: Dnevnik (27.04.2010)

Bulgarian pharmaceutical company Sopharma will vote at a June 23 shareholders’ meeting on a proposal to allow its board to repurchase stocks. According to the proposal, shares will be bought back at a price in the range BGN 3.5 to BGN 5.5 apiece. The buyback period will be set at two years. Sopharma traded at BGN 4.04 per share on Wednesday. “It seems the management thinks the shares are underestimated,” said Mincho Minchev, chief dealer at Investbank. He said the move was also prompted by an upcoming listing of Sopharma’s shares on the Warsaw Stock Exchange (WSE), which will make it the first Bulgarian firm to simultaneously trade on two markets.
Source: Dnevnik (10.05.2010)

The General Meeting of the shareholders of Sopharma-Sofia, Bourse code 3JR, which was held on June 23, 2010, decided that the company should not distribute dividends for 2010. Sopharma -Sofia reported profit to the amount of BGN 33 497 000.
Source: Capital market (25.06.2010)

Sopharma Logistica JSC will flow in Sopharma Trading JSC, decided the general meetings of both companies, which are in the portfolio of the pharmaceutical holding Sopharma JSC. After the merger all assets of the logistics company will go to the commercial. The capital of Sopharma Trading will be increased to BGN 32.9 million by issuing 2.9 million new shares with nominal value of BGN 1. The shares will be distributed to current investors in Sopharma Logistica, as for 1.9 shares will be received one new from the capital of the distributor of drugs. The parent company Sopharma JSC will receive 846 229 new shares.
Source: Pari (25.06.2010)

Bulgarian blue-chip drug maker Sopharma pulled off another upsurge in domestic sales, reporting a 2% increase for June. The company’s exports zoomed 66%. Since January, Sopharma’s overall sales have improved by 23% year-on-year, including flat sales at home and a 38% gain abroad. Until recently, the pharmaceutical firm posted either smaller sales or only minor increases, citing delayed hospital payments and reshuffles on the Bulgarian drug distribution market. For instance, in May the company saw a 9% year-on-year fall in sales as the overall hospital market slumped 15%. Sopharma is one of just a handful of Bulgarian companies to display better performance despite the market meltdown. For the first quarter of 2010, its profit rose by 36% year-on-year to over BGN 13 million mostly thanks to new market entries in Turkey, the Western Balkans and Ukraine, which offset a slight drop in Russia.
Source: Dnevnik (05.07.2010)

Real estate investment trust (REIT) Intercapital Property Development (ICPD) is poised to become the first Bulgarian company to list on the Warsaw Stock Exchange (WSE), company consultant Nikolay Meister told Dnevnik. ICPD, which already trades on the Bulgarian Stock Exchange (BSE), has already been registered with the Polish depositary and are expected to be listed for trading on the stock market this week. The Warsaw listing has been in the making for about a year. Bulgarian drug maker Sopharma plans to follow suit. The Warsaw market is attractive for many companies as it is among the least hurt by the downturn and there are plenty of investors out there to buy up stocks. On Friday, ICPD also unpackaged plans for a fivefold increase in capital to BGN 24.12 million. The REIT will issue new shares in a bid to raise approximately BGN 58 million to spend on new investments, Meister said. “The rights to participate in the capital hike will be most likely trade only on the Bulgarian stock market but we might attract investors from both Sofia and Warsaw,” he noted. The proceeds from the capital rise will be used to complete the construction of the company’s holiday village in the ski resort of Borovets, near Sofia, for the purchase of new land plots around the completed Marina Cape projects near Aheloy, on the southern Black Sea coast, and for new projects in Sofia.
Source: Dnevnik (05.07.2010)

Sopharma JSC will begin first repurchase of a maximum 3% of own shares, the Board of Directors of the company decided. The maximum term is two years, as 3.96 million shares will be bought. The pharmaceutical holding will buy its shares at prices between BGN 3.5 and 5.5 each. Investment mediator is Sofia International Securities AD. Sopharma has previously said that it could buy back shares only in case of merger of subsidiaries such as its pharmaceuticals producer Bulgarian Rose-Sevtopolis.
Source: Pari (12.08.2010)

Bulgarian blue-chip drug maker Sopharma will repurchase up to 3.96 million own shares, which represent up to 3% of its capital, according to a filing with the Bulgarian Stock Exchange (BSE) and the Financial Supervision Commission (FSC). The company will pay a bottom BGN 13.9 million and a ceiling BGN 21.8 million for a price range of BGN 3.5-5.5 per share. Sopharma has previously said that it could buy back shares only in case of merger of subsidiaries such as its pharmaceuticals producer Bulgarian Rose-Sevtopolis.
Source: Dnevnik (12.08.2010)

Bulgaria's blue-chip First Investment Bank (FIBank) has acquired a 2% stake in local health insurer Zdravnoosiguritelna Kasa Prime Health, the lender said in a statement on Thursday. The bank has further agreed to subscribe a number of shares that will allow it to become a majority shareholder in a potential increase of the insurer’s capital, which currently stands at BGN 2 million. No specific timeframe was provided. Zdravnoosiguritelna Kasa Prime Health holds slightly over 2% of the Bulgarian private health insurance market, ranking 11th among all 20 market players. For the first five months of the year, it reported revenue of just less than BGN 500,000. The Bulgarian private health insurance continued to expand, reaching BGN 21.6 million in terms of premium income from January through May, according to figures by the Financial Supervision Commission (FSC). Paid claims stood at BGN 3.77 million. The market leader, with a 21% market share, is Medico-21, which is controlled by blue-blooded pharmaceutical company Sopharma. Inevstbank-owned former leader Bulgaria-Zdrave was ousted to the second spot with 14.7%. Third ranks Generali Zakrila with 13.5% of all premiums.
Source: Dnevnik (13.08.2010)

Bulgarian drug distributor Sopharma Trading, part of blue-blooded pharmaceutical group Sopharma, said its sales surged 12% year-on-year to BGN 35 million in July. The company posted a pre-tax profit of BGN 846,000 for the seven months of the year, in comparison with BGN 110,000 a year earlier. Total revenue between January and July jumped by 11% to BGN 220 million. The improvement was backed by overall market growth, expanding the product range and signing new customers, Sopharma Trading says. In July alone, the company sold medical equipment worth nearly BGN 2 million.
Source: Dnevnik (16.08.2010)

Bulgarian exporters show signs recovery is losing steam Analysts’ warnings that the recovery in Bulgaria’s exports-oriented businesses will lose some speed seem to be coming true as shown in the earnings reports of some of those listed on the Bulgarian Stock Exchange (BSE). Car batter manufacturer Monbat boosted year-on-year sales for the ninth month in a row but the growth rate decelerated to the company’s full year volume guidance. On Friday, the company posted non-consolidated sales of BGN 12.58 million for July, up 33% from the corresponding month of 2009. In June, sales quickened by 58% on an annual basis. In July, Monbat’s pre-tax profit neared BGN 1.9 million, which represents a 22% year-on-year increase. This compares with 42% year-on-year in June and a whopping 85% in May. Monbat’s figures come after drug maker Sopharma posted a 23% year-on-year drop in turnover for July thanks to weak monthly exports prompted by Russian fires that delayed company shipments. Exports are the sole driver of economic growth in Bulgaria at the moment and are therefore being closely monitored by analysts. Thanks to a rebound in exports, the second-quarter contraction of the Bulgarian economy slowed to 1.5% on an annual basis, its lowest in five quarters. For the first quarter, the economy tanked 3.6%. The latest unofficial data by the Ministry of Finance (MoF) show recovery in exports continued in July, when they increased by 44% year-on-year. The month before exports returned to pre-crisis volumes.
Source: Dnevnik (23.08.2010)

Bulgaria’s banking mergers and acquisitions (M&A) market is on track to break the lull as Allied Irish Banks (AIB) prepares to offload its 49.9% stake in the Bulgarian American Credit Bank (BACB) by March 2011. Meanwhile, US-based Gramercy Emerging Markets Fund will seize this opportunity to try and exit its 30.92% investment in the Bulgarian lender. AIB’s plans were reported by a number of Irish media and have also been announced in the company’s first-half earnings report. By March 2011, the Irish company will also attempt to shed its equity stakes in AIB Group (UK), Poland’s BZWBK and US-based T Bank Corporation. Financial details were not disclosed. Gramercy’s sell-off intentions were divulged to Dnevnik by Angel Gyaurov, who represents its subsidiary Arco Capital Management on the Bulgarian market. “Nowadays there is hardly anyone who would buy a minority stake in a bank. It is logical to speak about the sale of a controlling stake, which includes the holdings of both AIB and Gramercy,” he said. Gyaurov added that the US fund had been looking to abandon its Bulgarian investment for some time but the move would be impossible without adding the Irish company’s stake given the market conditions. AIB declined to provide any further details about the potential deal. The Irish bank is in dire need of EUR 7.4 billion to beef up its capital base and ward off nationalisation. Approached for comment, BACB referred Dnevnik back to its Irish shareholder, explaining that this is where the official announcement of the sale came from. The likes of Europe’s largest lender Banco Santander SA, Poland’s Banco Santander SA and France’s Banco Santander SA will be all bidding for AIB’s 70% stake in BZWBK, estimated at USD 3 billion. However, no prospective buyers have been named for its Bulgarian investment. BACB closed at BGN 10.8 per share on the Bulgarian Stock Exchange (BSE) on Monday.
Source: Dnevnik (24.08.2010)

Bulgaria’s blue-blooded drug maker Sopharma recorded a 23% rise in first-half sales to almost BGN 293 million by consolidated numbers. The company’s profit for the period zoomed by 29% to BGN 26.25 million. The Ukrainian market jumped more than 70% as sales on the traditional Russian market grew by 28% year-on-year. The domestic market continued to generate the bulk of Sopharma’s revenue, increasing by 20% in the first half of the year. Exports continued to gain ground, with new markets such as Turkey and the Baltic counties bringing nearly EUR 2 million over he review period.
Source: Pari (30.08.2010)

After an “extraordinary” slump in July sales, Bulgaria’s blue-blooded pharmaceuticals maker Sopharma returned to positive territory in August, according to a company announcement at the end of last month. August turnover surged by 14% year-on-year in on the back of a rebound in exports. Sopharma’s foreign market sales jumped by 20% compared with the same month of 2009 as domestic sales remained flat. In July, the drug maker suffered a 2% drop in sales thanks to extraordinary circumstances including the Russian wildfires that caused customers to cancel offers. The company said it has agreed with local distributors to sell the quantities that were held up by the fires by the end of September.
Source: Dnevnik (07.09.2010)

Bulgarian drug maker Sopharma said in a regulatory filing that it has increased to 31.25% its interest in peer Unipharm, without specifying particulars of the deal. The move is part of the company’s efforts for consolidation within its group as in early 2009 Sopharma CEO Ognyan Donev said he planned mergers with group members Bulgarian Rose-Sevtopolis, Medica and Unipharm, in all of which Donev holds stakes. Economists explain these processes with manufacturers’ efforts to reduce costs amid stagnating sales. Unipharm posted BGN 1.14 million profit for the first half, on some BGN 9 million revenue, far stronger performance than in the same period of 2009, when it reported slightly lower sales, but costs were much higher. Last year the company booked a 7% profit growth to BGN 1.64 million due to significant cuts in financial costs. Sales rose 2% to BGN 19.14 million.
Source: Dnevnik (22.10.2010)

Bulgarian drug distributor Sopharma Trading, part of local pharmaceutical group Sopharma, saw its profit triple to BGN 5.3 million in the first nine months of 2010 compared with the corresponding period a year earlier. According to the company's non-consolidated report, the company recorded a positive result of BGN 1.78 million for January to September 2009. Sopharma Trading's sales stood at BGN 291 million in the period, up 12%. The rise in the distributor's figures was triggered by the market's continuing growth, the efficient logistics of the company and the diversification of its product portfolio and clients, according to the report.
Source: Dnevnik (01.11.2010)

Bulgarian car battery maker Monbat has filed paperwork with the country's financial watchdog to float its stock on another European bourse, the company said Monday. Monbat is already listed on the Bulgarian stock exchange. No further details on the bourse Monbat is targeting have been disclosed. Neither the company nor its majority stakeholders were available for comment. According to unofficial information, the battery manufacturer is eying the Warsaw stock exchange, the bourse on which another Bulgarian company, real estate investment trust (REIT) InterCapital Property Development, is listed. Meanwhile, local drug manufacturer Sopharma also considers going public in Poland. After securing an approval from Bulgaria's Financial Supervision Commission and depending on the market conditions and the technical options available for launching a dual-listing procedure, the company's management board will select the stock exchange, Monbat said.
Source: Dnevnik (02.11.2010)

Medica will begin to destroy its old and unused industrial sites and will sell the land if there is interest in them, announced the company which is part of Doverie - United Holding and Sopharma. About five years ago the company stopped processing cotton and began to buy it as a finished consumable for the production of bandages to reduce costs. Due to the suspension of this part of the production some of the buildings are not used and will now be destroyed for the land to be offered for sale, said Penka Tishkova, CEO of the company. If Medica fails to sell them to the demanded price, the company will develop an investment project in real estate with the assistance of Doverie - United Holding.
Source: Dnevnik (03.11.2010)

Bulgaria's pharmaceuticals maker Sopharma recorded a 16.5% rise in net profit to BGN 37.8 million for the first nine months of 2010, according to the company's consolidated report published on Monday. The positive result was attributed to the growth in sales revenue, which marked a 27% annual rise to BGN 434 million, with sales on the domestic market accounting for 66% of the total. Sopharma's foreign sales jumped by 39% for January to September. European markets contributed 29% to the company's sales abroad in the period, but the drug maker also recorded a sufficient increase in exports to countries such as Moldova and Mongolia, rising 35% each. The company also registered a 29% jump in expenses, mainly triggered by the growth in sales and the cost of products sold on the domestic market, as well as by the 38% rise in expenditures for external services. A major step in Sopharma's development in the period was the launch of the construction of a plant for drugs in tablet form near Belgrade, with investments in the project seen to make up EUR 8 million. Earlier in November, the pharmaceutical maker announced plans to unveil a new subsidiary in Poland, dubbed Sopharma Poland, which is expected to strengthen the company's presence in the country. Sopharma also registered the first Bulgarian medicine in Austria, neurological disorder drug Nivalin, making its way to one of the most conservative markets in Europe.
Source: Dnevnik (30.11.2010)

One of the largest Bulgarian pharmaceutical companies, Sopharma, has announced a massive investment into a new production plant. On December 9, 2010, the company will break the ground for its new factory, in which it will invest BGN 70 M. The new facility will be producing up to 4 billion pills per year of over 100 different types of medicines, and will employ 420 people once it is completed. The CEO of Sopharma Ognyan Donev will break the ground for the construction together with Bulgarian Prime Minister Boyko Borisov. The company plans to complete its modernization program with the construction of the new factory, which will be its 13th production plant that meets the standards of "Good Manufacturing Practice" or "GMP", a quality system covering the manufacture and testing of pharmaceutical products. Sopharma boasts a boost of its exports, with stable positions on its traditional foreign markets and growth in its exports on markets it entered more recently such as Turkey, Serbia, Austria and Bosnia and Herzegovina. The company recently announced it would open a subsidiary in Poland, and it is about to complete its procedures for registration in China and Finland. Sopharma is responsible for the bulk of Bulgaria's exports of pharmaceutical products. Sopharma has already received a certificate for a Class "A" Investor by the InvestBulgaria Agency for its project for a new plant. The new facility will feature energy efficient buildings and energy-saving technologies. The pharmaceuticals manufacturing is a traditionally strong sector developed in Bulgaria during the communist period as a branch of the country's chemical industry.
Source: profit.bg (07.12.2010)

Pharmaceutical giants to remould the Bulgarian generic market Currently, several large international generic companies are setting foot on the Bulgarian pharmaceutical market. They are entering our drug market with two major advantages related to lower prices and generic strategy. Furthermore, these pharmaceutical concerns have a huge portfolio and are price competitive. The pharmaceutical companies TEVA and Ratiopharm have been expanding their presence in Bulgaria and, soon, Mylan Inc. is expected to join them too, announced Doctor Kuncho Trifonov, Manager of IMS Health Inc., Bulgaria, which is a global marketing company dealing with analyses of the pharmaceutical market. TEVA Pharmaceutical Industries Ltd. is based in Israel, where it is a market leader and one of the 25 largest global pharmaceutical concerns. Ratiopharm is a German generic company, while Mylan Inc.'s headquarters are in the U.S. The interest of major concerns will grow Bulgaria is the EU member-state which has a well-regulated and sustainable pharmaceutical market. These facts alone are sufficient grounds for the presence of large foreign pharmaceutical companies on the Bulgarian market, commented Dr. Trifonov. In the long run, the sustained growth of the generic market is expected to continue because, in Bulgaria, there are several healthcare problems, in particular of drug therapy-wise. Forthcoming shifting of market leaders The presence of foreign generic concerns in our country will definitely change the Bulgarian pharmaceutical market. What is forthcoming is increased competition, a shifting of market leaders, the integration of the general environment of the Bulgarian pharmaceutical industry into that of Central European countries. According to Dr. Trifonov, price bidding among the generic companies themselves can be expected but there will not be any price reduction of the medicines offered in our country. In his opinion, the prices of drugs in Bulgaria are among the lowest in the EU and there is no economic logic in these being reduced. Roots and Heritage The Bulgarian pharmaceutical market has always been generic and the reasons for this are historical, stated Dr. Trifonov. The pharmaceutical industry is a high-tech one and, like other high-tech sectors, was almost absent in Bulgaria in the 1950's. The industrialisation of our country required a rapid closing of the gap with West European countries and generic development was selected as a solution. This was the correct decision, indicated the expert. In this way, Bulgaria did not become an exception, compared to the other countries from the former Socialist bloc, and, after its collapse, it inherited a completely generic pharmaceutical industry. A pro-generic policy is not a Bulgarian patent Actually, the progeneric policy originated in countries with an original pharmaceutical market and is aimed at optimising the cost of medicines. A number of factors, including the ageing population, social policies, pre-election promises and others make necessary the optimisation of expenditures and the expansion of the treatment coverage at fixed costs for medications. The natural decision is to support generic consumption. In 2010, the volume ratio between the original and the generic markets in Bulgaria is expected to be 80:20 in favour of generic products. With respect to generic drugs, the value ratio is 55:45. In the next five years, the volume ratio is anticipated to reach 75:25 and, afterwards, to return to 80:20. The reason for this are the expiring patents of original products and their substitution with generic ones.
Source: Class (08.12.2010)

Bulgarian pharmaceuticals maker Sopharma will break ground on its solid dosage form plant in Sofia on Thursday, with investments in the facility seen to make up BGN 70 million, company CEO Ognian Donev told Dnevnik. The factory will be located at the Iliensko Chausse boulevard. The new facility will employ 420, while construction works at the project are expected to be completed within 18 months. "Our ambitions are to build the most modern pharmaceutical facility in the region. This will be the main advantage for the group, since we already have sufficient production capacity," Donev said. Sopharma will finance the plant's construction with own funds and bank loans. Currently, the company is building another plant near Belgrade. "Our project in Serbia is smaller, it was launched two weeks earlier, so it should be completed in 12 months," Donev said in November. Sopharma is also in the process of upgrading its Ukraine-based factory.
Source: Dnevnik (09.12.2010)

Bulgarian pharmaceuticals maker Sopharma sticks to its outlook for a growth of 12% to 15% in sales to between BGN 230 million and BGN 236 million for the full 2010, CEO Ognian Donev said on Thursday during the groundbreaking ceremony for its new plant in Sofia. The company booked a turnover of almost BGN 205 million and a net profit of BGN 33.5 million in 2009. So far, Sopharma's results have been in line its management's expectations thanks to a rebound in exports. The drug maker witnessed a 19% annual rise in sales to BGN 153 million in the January-September period, as well as an increase of 17% in net profit to BGN 36 million. The new plant, worth BGN 70 million, is expected to be completed in the middle of 2012 and to employ 420. Sopharma will finance the facility's construction with own funds and bank loans. The solid dosage form factory will have an annual capacity of four billion tablets and its output will feature over 100 pharmaceutical products, which will be offered in 28 countries. Among the company's new markets are Turkey, Serbia Bosnia and Herzegovina, but the manufacturer is also keen to set foot in Finland and China. Sopharma is currently building another plant near Belgrade, valued at EUR 8 million, which will create 170 jobs. The company is also in the process of upgrading its Ukrainian factory.
Source: Dnevnik (10.12.2010)

German WAZ Media Group has sold its Bulgarian assets to BG Privatinvest, newspaper Trud, which is among the group's editions in the country, wrote on Tuesday. Under the agreement signed between the companies, BG Privatinvest GmbH will purchase dailies Trud, 24 Chasa 168 Chasa weekly, several magazines, printing house Sofia and press distributor Strela. Vienna-based BG Privatinvest, partnering with local businessmen Ognyan Donev and Lyubomir Pavlov, is controlled by Karl Habsburg, Daniel Rutz and Hristo Grozev. According to an earlier report of 24 chasa, Habsburg holds a 34% stake in the company, while Rutz and Grozev own 33% each. According to capital.bg, BG Privatinvest had set up a Bulgarian subsidiary dubbed BG Printmedia to carry out the deal.
Source: Dnevnik (15.12.2010)

Bulgarian drug distributor Sopharma Trading, part of local pharmaceutical group Sopharma, ended the first eleven months of 2010 with a net profit of BGN 4.4 million, despite the negative goodwill of BGN 2.2 million due to the integration of Sopharma Logistics, another unit of the group. In November alone, the company recorded net earnings of BGN 372,000. Sopharma Trading's sales revenue rose 13% in annual terms to BGN 360 million in the period, of which BGN 36 million were generated in the eleventh month of the year, up 11.2%. Since the beginning of 2010, both Sopharma and its distribution division have been reporting sound financial results and growth in sales despite the tough operating conditions, partly due to the fact that the pharmaceutical sector has remained almost unscathed by the economic crisis. In November, Sopharma witnessed a slight deterioration in its performance due to the 6% drop in revenue from sales on the domestic market. Nevertheless, total revenue marked an annual increase of 15%, while sales abroad rose 23% for January to November. Recently, the drug manufacturer broke ground on its new plant in Sofia, likely to be completed within 18 months, which will have an annual production capacity of four billion tablets.
Source: Dnevnik (17.12.2010)