Hungarian pharmaceutical group Gedeon Richter reported a 5.2 percent sales increase in Romania, to EUR 74.9 million, in the first six months of 2014. The Romanian market is the second largest in terms of sales for the group, after Russia, with a 13 percent contribution to the total turnover of the group.

The Hungarian company reduced its overall sales by 5.3 percent in the analyzed period, to EUR 570 million, due to strong declines, of more than 20 percent, in some of its core markets such as Russia, Ukraine and Poland, the group’s financial statements show. The group’s net profit was also down by 22 percent, to EUR 75 million.

In Romania, Gedeon Richter owns a drug factory in Targu-Mures, a network of over 120 drugstores and a drug distribution company, Pharmapharm.

“Our Romanian subsidiaries made 72 percent of the turnover in the Wholesale and Retail segment (EUR 66.8 million), with the remainder primarily being invoiced by our subsidiaries in the CIS region. The sales increase in Romania was 7.8 percent in EUR terms in the first half 2014. A slow reduction in payment delays continued on the Romanian pharma market during the first half 2014, yet excessive delays continue to prevail in the pharma sector,” the company stated in its half year report.

Sales of the group’s own pharmaceutical products declined by 2.5 percent, in EUR terms, in the first half of 2014, to EUR 15.5 million. “Sales of the range of oral contraceptives, Cavinton, Aflamin and Zoledronic acid infusion contributed the most to sales levels achieved during the first half of 2014,” the company said.

Gedeon Richter’s sales of female healthcare products in Romania increased by 12.9 percent in the first six months, to EUR 3.5 million.

Andrei Chirileasa, andrei@romania-insider.com