A contract has been signed on strategic merger of Belupo and Farmavita

After successfully closed negotiations, the Contract on stategic merger of the Croatian pharmaceutical company Belupo and Bosnia and Herzegovinian company Farmavita has been signed today in Koprivnica. The President of the Belupo Board, Stanislav Biondić and the owner of Farmavita Sead Babić signed the contract.

After signing the contract, Stanislav Biondić has said: «The strategy of Belupo is based on the organic growth through new products and new markets and on anorganic growth through acquisitions in the region. We have recognized Farmavita as a reliable partner with a good marketing position and management which knows and understands the business management by quick adjustments to the market specific qualities.»

Sead Babić has said: »We are aware that the strategy of completely independent marketing activity is very risky, but at the same time, by monitoring the trends of pharmaceutical market, the local and global, Farmavita has decided on a strategic merger with Belupo.»

By this strategic merger of these two companies, Belupo will continue with its clearly defined strategy which is based on the development of global business management, strengthening the market position in the region, especially in Bosnia and Herzegovina, and on the possibility of creating new markets. The joint business managing of the two companies will give opportunity in a short time of the rise of registered medicines, better market supply of which the consumers will benefit, and the health insurance agencies and the hospitals will be provided with the best value for the money of the state budget.

Farmavita was founded in 1991 as wholesale of pharmaceuticals and medicine products and is in private property. The company built in 2005 a production and business complex and provided the up-to-date facilities for the licensed medicine production and optimal storage condition in compliance with the valid international standards. The end of 2005 was marked with the GMP plant certificate and the production permission for the medicines.

The medicines of its own production range, of Farmavita, were enlisted during 2007 in positive essential lists of almost all cantons of the Federation of the Bosnia and Herzegovina. At the moment, Farmavita has nearly employees, of which 50% are highly educated professionals.

In 2006, Farmavita earned 26.635 millions KMs on the Bosnia and Herzegovina’s market, and according to preliminary estimation, they expect to earn the minimum of 31 million KMs in 2007, and, for the first time, a significant income of selling their own medicines. The flexible production facilities, good market position, a management that knows, understands and creates the business managing by quick adjustments to the market specific qualities – these are all the assumptions that put Farmavita in a high position on the level of pharmaceutical companies which are interesting to the big pharmaceutical companies for various forms of business connections.

Belupo is second in size domestic producer of medicines, having the 95 medicines in its range of products in 223 forms. Croatia is the biggest Belupo’s market where the 78% of sales are done, while the rest of 22% it makes on internationa markets. The liberalisation of the medicine market has changed a lot of things on the global market and also on the Croatian market. Today, Belupo has the 11,46% of the Croatian market of the prescription medicines. In Croatia, the company is the leader in cardiovascular and dermatological programme with the two best-selling medicines for the cure of hypertension and prevention of cardiovascular desease. In the sales of off-the-counter medicines (OTC), Belupo is on the second places and has a big trend in growth.
Belupo is present on international markets through its portfeuille of medicines, in the region of Southeastern Europe of which the market of Bosnia and Herzegovina has 21% of the entire export, and in Czech Republic, Slovakia, Slovenia, Russia and Romania.

In 2006 the value of the sales of Belupo products in Bosnia and Herzegovina was around 7.962 millions KMs or 4, 3% of the entire import of medicine in the Federation of Bosnia and Herzegovina. Belupo takes the 6. place among the foreign medicine suppliers in the Federation of Bosnia and Herzegovina. In 2006, Belupo registered 41 medicines in many forms in Bosnia and Herzegovina. Last business year, the company signed contracts with local partners about representation and distribution of the medicines of Belupo on the markets of Romania, Albania and Turkey, the goal of the first quarter of 2008 is to sign contracts with the local partners on the markets of Poland and Bolgaria The company is working on a possibility to do the same on the Hungarian and Spanish markets. We are planning that Ukraine, Belarus and Kasahstan will be included in this process till the summer of 2008. In some of this countries the registration of our medicines has been started and the leading role in this has our dermatological programme. By the end of the decade, we plan to realize around 30% fo the Belupo sales abroad.
In 2007 we launched on the market seven new products, and in 2008 we will launch on the market 17 ethical medicines in 37 shapes, and five new off-the-counter products in five shapes.