3% increase in sales revenues in 2015

Main decisions taken by Antibiotice’s General Meeting of Shareholders held on April 19, 2016

• The General Meeting of Shareholders held on April 19, 2016 approved the audited financial statements of the fiscal year 2015, Income and Expenditure Budget for 2016 and set the business targets for the current year.
• The GMS fixed also the value of gross dividend per share, their payment term and approved the change of the membership of Antibiotice Management Board.
• In the same context, the GMS approved the setting of a new Antibiotice representative office in Vietnam and affiliation of our company to the National Committee of International Chamber of Commerce (ICC) – România, as well as to the Romanian – American Chamber of Commerce.

1. 2015 audited economic and financial results
3% increase in sales revenues

Our presence in the domestic market
Given that in the pharmaceutical market in Romania:
• the total sales of medicines dropped by 4.7% to RON 11.7 billion, this representing the first decline of the pharmaceutical market in the last decade (according to the data provided by the market research company Cegedim);
• prices of generics decreased on average by 20% by applying the order no. 75/2009 with the subsequent amendments;
• the clawback tax increases from year to year (in 2015 it represented 11% of Antibiotice revenues from the sale of products in the domestic market),

Antibiotice fulfilled its financial indicators, managing to:

– increase its sales income by 3% as compared to 2014, recording a values of RON 330 million while maintaining the profitability indicators and expenses at a sound level;

– obtain a gross profit of RON 32 million, higher by 23% compared to the profit estimated in the Income & Expense Budget;

– to apply a prudent policy with regard to the adjustments for the market retail clients (Antibiotice products being sold in about 5,000 pharmacies).

Not making these adjustments would have resulted in a gross profit of RON 42 million.

In 2015 our company strengthened its market share of 2.45% (higher by 17 % compared to 2014), ranking fourth among the manufacturers of generics with medical prescription and OTCs in Romania, according to Cegedim.

8 new products in our portfolio
According to the steps taken for developing the product portfolio, Antibiotice will consolidate between 2016-2020 its position as a complex manufacturer adapted to the terapheutic trends, developing along with the products defining the core business of the company (antiinfective and dermatological products), the essential generics, alternatives to the innovative products, for the cardiovascular, neurovegetative and digestive tract diseases.
Therefore, in 2015, Antibiotice launched in the market 8 new products in the therapeutic classes in which it intends to consolidate its position in the coming years.
• Cardiovascular System – Antibiotice completed its portfolio, creating its own range for the rosuvastatin molecule (cholesterol and triglycerides regulators): Rosuvastatina Atb®, tablets 5, 10 and 20 mg;
• Antiinfectives – Imipenem/Clistatina Atb® for injection, belonging to the carbapenem subclass;
• Dermatological preparations – costicosteroid Clobetazol Atb® ointment;
• Genitourinary Apparatus – the products Nystatin Atb® ovules and Zifex Duo® ovules (clotrimazole + metronidazole);
• Central Nervous System – Memantina Atb® 20 mg tablets (Anti-Alzheimer product).

Our presence in the external market
7 % increase in the foreign marlets
In 2015, Antibiotice exports amounted to USD 22,98 million, higher by 7% than the figure recorded in 2014. The export share in the total turnover was 28%.

Sales of Nystatin, a growth engine of 2015 exports
2015 reconfirmed our position as a world leader in the production of Nystatin. The US market recorded the highest growth rate in the sales of Nystatin. The sales tripled in this market compared to 2014 as a result of attracting some significant end-users of this active ingredient.

A new Antibiotice brand in the US market
In 2015, a new product was authorized in the US market, contributing to our international expansion. Thus, Ampicillin and Sulbactam – powder for solution for injection/infusion, 1.5 and 3 g joined the other injectable products already present on that market, Ampicillin (4 concentrations) and Nafcillin (2 concentrations).
14 new marketing authorizations at international level
The results of research & development stages led to obtaining 14 new marketing authorizations while other products already traded in the international market, in 5 countries in Europe, Asia and Africa, were reauthorized.

2. Distribution of 2015 profit
Following the vote within the General Meeting of Shareholders, the company’s shareholders decided the distribution of 2015 net profit worth RON 27,178,823 fixing the gross dividend per share at RON 0.020785855 and payment of dividends starting with September 15, 2016, in accordance with the legal provisions in force

Destination                                                                                                                       Amount(RON)
Profit to distribute:                                                                                                                    27.178.823
– legal reserve                                                                                                                                              0
– self-financing sources and other ways of  profit distribution, according to the law 13.224.488
– dividends, of which:                                                                                                                13.954.335
dividends due to the main shareholder                                                                             7.398.208

dividends due to other legal and natural persons                                                           6.556.127

3. Changing the composition of Antibiotice’s Management Board
In accordance with GEO 109/2011 on the corporate governance of public enterprises, the Ordinary General Meeting of Shareholders voted the following members in the Management Board:

– Ec. Ioan Nani – nominated by the Ministry of Health
– Ec. Nicolae Stoian – nominated by S.I.F. Oltenia
– Eng. Elena Calițoiu – nominated by S.I.F. Oltenia

  • Members of the Board reunited and elected Mr. Ionuț Sebastian Iavor as President and Mr. Ioan Nani as Vice President. Mr. Iavor is General Director in the General Human Resources Directorate, Legal and Litigation Department, within the Ministry of Health. Mr. Ioan Nani is the General Director of Antibiotice, selected in accordance with GEO 109/2011.

4. The Ordinary General Meeting of Shareholders approved the management plan 2016-2020 of the Management Board which assumes the increase of the turnover and profitability by researching and developing new products and by internationalizing our business.

5. The Ordinary General Meeting of Shareholders approved the setting of an Antibiotice representative office in Vietnam The setting of a new representative office in Vietnam is aimed at developing our business affairs in the area of South East Asia, an area with a growth potential for Antibiotice products. If our 2016 sales in the Vietnamese market target a 30% increase compared to the previous year, we estimate to triple the sales in 2020. Our company has been present in Vietnam since 2001 with the active ingredient Nystatin and since 2004 with finished products, 14 products being registered in this market.

6. The Ordinary General Meeting of Shareholders approved the affiliation of Antibiotice to the National Committee of International Chamber of Commerce (ICC) – Romania and to Romanian-American Chamber of Commerce.

The Chamber of Commerce and Industry of Romania (CCIR) is a member of the International Chamber of Commerce (ICC) through the ICC Romania National Committee, a prestigious institution for the world business, comprising the Chambers of Commerce in over 130 countries and representative companies worldwide.
CCIR formed an elite group of the Romanian business environment, by inviting all major contributors of Romania to join ICC Romania National Committee.
The main purpose of the National Committee is to centralise and harmonise the views of the Romanian business environment and to make concrete proposals to the Government of Romania, as well as to the European and world institutions, for the development of a stable, predictable and fair business environment that contributes directly to the economic development.

7. Business targets for 2016 in terms of income and profit

The General Meeting of Shareholders held on April 19, 2016 approved the Income and Expenditure Budget for 2016 and the business targets for the current year. We forecast a total income amounting to RON 350 million and a gross profit of RON 34,2 million, both higher by 6% compared to 2015.
In substantiating the Revenue and Expenditure Budget for this year we took also into account the factors with negative influence such as the progressive growth of clawback tax, which is estimated to reduce the company’s profit by RON 30 million, increase in the manufacturing costs but also the decrease of the generics’ prices.

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