Biofarm Emerges As Most Profitable Pharma Company On Bucharest Bourse

02.20.2012 By Adrian Cojocar

Biofarm (BIO.RO) was the most profitable pharmaceuticals company on the Bucharest stock exchange last year. Despite a two-percentage point drop in net profit margin to 15.5%, the drugmaker surpassed French-owned Zentiva (SCD.RO) for the number one spot.

Biofarm said higher distribution costs and other operating expenses hit the profitability rate, which fell from 17.5% in 2010.

Zentiva Bucuresti, a unit of France's Sanofi, reported a profit margin of 13.4% in 2011, down from 22.1% a year earlier. With a 2% annual increase in its net profit ratio, Antibiotice Iasi (ATB.RO) was the third most profitable pharma company on the exchange last year. The company posted a profit margin of 7.1%, from 5.1% in 2010.

Biofarm's net income increased only marginally to 14.5 million lei (EUR3.4 million) in 2011, from RON14.4 million in the previous year.

However, the drugmaker finished the fourth quarter with a profit of RON0.75 million, whereas its two competitors posted losses.

Price-cutting and market and advertising strategies boosted Biofarm's sales in 2011. The drugmaker is among the top ten companies based on the number of units sold in 2011. Sales were up 13.5% on the year to RON93.4 million.

Biofarm has a share capital of RON109.4 million split into 1.09 billion shares with a face value of RON0.1.

Regional investment funds SIF Oltenia (SIF5.RO), SIF Banat Crisana (SIF1.RO) and SIF Moldova (SIF2.RO) own together around 54% of Biofarm's shares.

(English version by Florentina Dragu)