2014 Generics Sales: $1.3 billion +3%
Worldwide Market Share: 1.8%
As was the case with many larger multinational pharmas last year, currency fluctuations had a major impact on Krka's haul for the year, particularly in the fourth quarter. But because Krka is based in Slovenia and its sales are concentrated in that region, a weak Russian ruble also stymied its growth.
Worldwide, Krka posted just 1% growth in generics sales, bringing in $1.3 billion last year. Its share of the global generics market fell to 1.8%. Western sanctions against Russia and a weak oil market were partly to blame for the region's economic instability during the period.
To combat the currency effects, CEO Jože Colarič said in the year-end report, Krka sought to sell higher quantities and "more affordable products," selling about 12 billion tablets, capsules and injections annually in Slovenia, Russia, Poland, Croatia and Germany.
"We mitigate severe price pressures by launching new products and increasing the volume of production and sales," he wrote.
In the Eastern European region--Krka's strongest--it brought in just over €400 million in revenue last year, with the largest individual market being the Russian Federation. Sales there fell 5% in euro terms, though they grew in rubles and in volume.
Krka celebrated its 60th anniversary in 2014, a year that also saw the company put to rest a 2012 pay-for-delay case with a €10 million fine. It wasn't all bad, though, as it was able to complete its largest investment ever--a manufacturing plant dubbed Notol 2 that will boost its annual production capacity in the next two years by 4.5 billion tablets and capsules--and another plant, Sinteza 1, to produce more APIs and continue its vertical consolidation.
Looking toward the future, Colarič said the company will continue to supplement its products with new drugs with market potential. For instance, he added, all of the company's launches within the past 5 years accounted for more than 40% of its 2014 sales. The company has 175 projects in its pipeline and obtained market approval for 19 new products in 47 dosage forms in 2014.
In continuing its outreach, last year the company added a new market region--Overseas Markets comprising the Middle and Far East, Africa and Americas--to its 5 existing regions.
As far as 2015 goes, Colarič said, "Our plans are ambitious, but at the same time we know that the unfavourable exchange rates of the Russian rouble will continue to affect operations," with sales expected at €1.26 billion.
-- Eric Sagonowsky (email)
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