TERAPIA RANBAXY IN

CONSUMER HEALTH (ROMANIA)

Euromonitor International
July 2013

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T E RA P I A RA NB A XY I N C ONS UME R HE A L T H ( ROMA NI A ) P a s s p o r t I
E u r o mo n i t o r I n t e r n a t i o n a l
LIST OF CONTENTS AND TABLES

Strategic Direction ........................................................................................................................ 1
Key Facts ..................................................................................................................................... 1
Summary 1 Terapia Ranbaxy: Key Facts ........................................................................ 1
Summary 2 Terapia Ranbaxy: Operational Indicators ..................................................... 1
Company Background .................................................................................................................. 1
Production .................................................................................................................................... 2
Competitive Positioning ................................................................................................................ 2
Summary 3 Terapia Ranbaxy: Competitive Position 2012 .............................................. 2


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T E RA P I A RA NB A XY I N C ONS UME R HE A L T H ( ROMA NI A ) P a s s p o r t 1
E u r o mo n i t o r I n t e r n a t i o n a l
TERAPIA RANBAXY


STRATEGIC DIRECTION
The acquisition of Terapia by Indian company Ranbaxy in 2006 was carried out to enable the
Indian company easy access into the EU, with Romania becoming a Member State in 2007.
The new company operates under the trade name Terapia Ranbaxy. Antibiotics, drugs for the
respiratory system and natural products will represent its main focus for further development,
in addition to its existing brands. Investment in packaging and brand promotion represent
another priority for the company, which considers the manufacturing and sales platforms in
Romania ready to support sales across Europe. The sales force was doubled since the
takeover by Ranbaxy, and is supported by capacity expansion and modernisation.


KEY FACTS

Summary 1 Terapia Ranbaxy: Key Facts
Full name of company: Terapia Ranbaxy
Address: 124, Fabricii Street, Cluj-Napoca, Romania
Tel: +40 (264) 501 500
Fax: +40 (264) 415 097
www: www.terapia-ranbaxy.ro
Activities: Manufacturer of drugs
Source: Euromonitor International from company reports, company research, trade press, trade sources


Summary 2 Terapia Ranbaxy: Operational Indicators
2010 2011
Net sales RON376.2 million RON421 million
Net profit RON95.7 million RON109.6 million
Number of employees 677 677
Source: Euromonitor International from company reports, company research, trade press, trade sources



COMPANY BACKGROUND
After the exit of the US financial group Advent International, Terapia was purchased at the
beginning of 2006 by the Indian company Ranbaxy Laboratories Ltd, following a deal
estimated at US$324 million. Through this acquisition, the new company became the largest
manufacturer of generics in Romania. Terapia was the first domestic drug producer to obtain
GMP certification.
Terapia has made several changes to its distribution, in that it has drastically reduced the
number of distributors from hundreds to only seven at the time of writing, in an effort to
develop special relationships with regards to payment terms and market information. At the
same time, the company developed its own distribution network, operated by Terapia
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T E RA P I A RA NB A XY I N C ONS UME R HE A L T H ( ROMA NI A ) P a s s p o r t 2
E u r o mo n i t o r I n t e r n a t i o n a l
Distributie, which is responsible for around 70% of domestic sales. Sales are supported by a
strong team of medical representatives, which cover Romanias main cities.
At the beginning of 2010, the company announced the finalisation of a warehouse in Apahida,
Cluj county, which increased the storage capacity of its own products and also added
warehouse services for Ranbaxy products. Currently, it has a presence in the following
Therapeutic Segments: Cardiovascular, Anti-infectives, Central Nervous System (CNS),
Gastrointestinal and Musculoskeletal


PRODUCTION
Terapia has one manufacturing facility in Romania, located in Cluj-Napoca. Following an
important investment, the company completed the modernisation of its injectable medicines
section and obtained GMP certification. In 2004 it also began a 3-year investment programme
for environmental protection, which amounted to 8 million, with the main objective being to
modernise its entire production facility, which stimulated sales growth and the launch of new
products.
Terapia, through Advent International, in 2005 acquired two companies in Bucharest -
Promedic and Pharmaplant Biogalenica - which became Terapias liquid medicines division.
At the end of the review period, the new owner, Ranbaxy Laboratories, was negotiating the
sale of this division. Rumours suggested that the purchaser could be an Indian company
aiming to sell liquid medicines or syrups in Romania and Europe.
Terapia is one of the main exporters of drugs. Encouraged by its excellent results in Russia,
where the company sells about 16% of its drugs output in 2012, Terapia began operations in
Poland in 2004 through a representative to coordinate and run marketing activities. The
company expects Faringosept, a pharyngeal remedy popular in foreign markets, to be at least
as successful in the EU as in Russia. Terapia also launched Aspacardin in foreign markets.
Terapia operates a modern processing line for injectables. The lines capacity is one of the
companys strengths, and it expects to sell some of its products in India. The fact that Terapia
is owned by Ranbaxy makes it the strongest domestic exporter, using Ranbaxys subsidiaries
across the world


COMPETITIVE POSITIONING
Terapia Ranbaxys growth is the result of the expansion of its portfolio, especially of consumer
health products, and the development of its marketing and sales department. At the end of the
review period, Terapia owned 20 brands of consumer health medicines, mainly in analgesics,
cough, cold and allergy (hay fever) remedies and digestive remedies.
The company enjoys an important position in consumer health, in which it was ranked 14th,
with a 2% value share in 2012. This share is expected to grow in the future, given that
Ranbaxy is involved in the manufacture and sale of natural herbal/traditional products.
According to Forbes, Terapia Ranbaxy ranked ninth among the top-20 players in this market
with sales of 439 million.

Summary 3 Terapia Ranbaxy: Competitive Position 2012
Product type Value share Rank
Analgesics 3.9% 7
Cough, cold and allergy (hay
fever) remedies
1.6% 14
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T E RA P I A RA NB A XY I N C ONS UME R HE A L T H ( ROMA NI A ) P a s s p o r t 3
E u r o mo n i t o r I n t e r n a t i o n a l
Vitamins and dietary
supplements
1.8% 10
Source: Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews


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