Theoretically, following an acquisition or a merger, the newly-formed entity should get a bigger market share or post bigger sales than its components used to. This is the so-called and eagerly awaited synergy effect. There are, however, cases when things are not as simple as they may look, at least in the short term. For instance, Sandoz Romania, arm of the generic drugs unit of Swiss group Novartis - one of the world's largest pharmaceutical groups, saw its market share drop from 4.6% to 4%, according to company officials. Sandoz Romania became one of the main players on the Romanian drug market in 2003, after Novartis bought Slovenian company Lek last year. Lek held 3.9% market share, while Sandoz held 0.7%. This year, Lek's market share decreased from 3.9% to 3.3%.
"The market share mainly decreased because we lost many of the auctions organised by hospitals for buying antibiotics. It happened because many of our competitors are not playing fair at the auctions - they even come with a 90% discount, which should become the Competition Commission's top priority," Tomislav Cuk, general director of Sandoz Romania, told Ziarul Financiar. Following the Novartis-Lek acquisition, Sandoz Romania is comprised of Lek Romania (which imports drugs produced by the Slovenian group), Lek-Pharmatech (controlling two plants based in T=rgu-Mures) and Sandoz (the former Biochemie). Cuk mentioned Sandoz sales were hurt this year also by the financial crisis in the medical system, which was the sharpest in the last years. The Romanian State owes some $300 million to drugmakers, representing sales in 2002.
"Almost everything we sold to the hospitals in 2002 are debts now. The State is not paying, but we have to pay VAT, the social security contribution (CAS) and other taxes to the State, while the profit is only on paper," Cuk said. laurentiu.ispir@zf.ro
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
