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Potential M&A in Bulgarian Pharmaceutical Industry . Merdan Atdayev Jahan Taganova Nikolay Petrov. Overview of the Bulgarian Industry. Leading and fastest growing sector 13th in the latest Pharmaceutical and Healthcare Business Environment Ratings (BERs) for emerging Europe.

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potential m a in bulgarian pharmaceutical industry

Potential M&A in Bulgarian Pharmaceutical Industry

Merdan Atdayev



overview of the bulgarian industry
Overview of the Bulgarian Industry
  • Leading and fastest growing sector
  • 13th in the latest Pharmaceutical and Healthcare Business Environment Ratings (BERs) for emerging Europe.
  • The main competitive advantages:

- good experience

- high quality production

- attractive prices

  • January, 2007: Bulgarian pharmaceutical legislation has been harmonized with the EU regulations.
  • In 2010: growth of the whole sector is 9%; pharmacies: 12%.
  • The bestselling medicines in Bulgaria:hypertension and diabetes pills
  • In 2010 he volume of the pharmaceutical market reached BGN 2,000,000,000
  • 10% growth in the medicine with prescription;
  • The revenues from medicines without prescription increased by 4% in 2010.
  • The sales of the so called original products grew 15% (as revenues)
  • Leading export destinations for Bulgarian pharmaceuticals are:

- Russia (33% of total exports),

- Romania (14%),

- Croatia (10%),

- Ukraine (9%),

- Serbia (7%).


The six Bulgarian companies:

  • Sopharma,
  • Medica,
  • Sevtopolis,
  • MominaKrepost,
  • Unifarm,
  • Septona

80% of the market.

potential target sopharma company overview
Potential Target: SopharmaCompany Overview
  • The establishment of Sopharma can be dated back to 1933, when the Bulgarian pharmaceutical manufacturing was initiated with the building of the first manufacturing laboratory for pharmaceuticals
  • For the period 1953-2000 Sopharma is the leading pharmaceutical producer in Bulgaria
  • In 2000, Sopharma became a private pharmaceutical company
  • In 2004, Sopharma licensed its production facilities according to the European GMP
  • In 2005, Sopharma opened the most modern logistics center in Bulgaria
  • Due to its big size, the company employs agressive and dynamic development strategy
  • Following the privatization, Sopharma united six enterprises including Sopharma AD, Unipharm ASD, Vramed AD, Pharmachim Holding AD, NIFHI AD and Rostbalkanpharm
company overview
Company Overview
  • Sopharma trades with companies in Europe, Asia, Africa and North America
  • The largest share in the export market is in Russia, Ukraine and Poland
  • The main share of exports come from original Sopharma products such as Carsil, Tempalginand Broncholitin
  • Recently, there has been increase in demand for products such as Tabex, Nivalin, Tribestan
  • Sopharma produces over 150 medicines, in 13 factories
  • In 2010, Sopharma marked a growth of 12% in sales, 21% in profit, and 41% in export
  • Donev Investments Holding AD 24.66%
  • TelecomplectAD 20.42%
  • Financial Consulting Company EOOD 16.24%
  • Gramercy Select Master Fund 6.49%
  • Gramercy Emerging Markets Fund 6.05%
  • Other legal persons 22.86%
  • Physical persons 3.28%
investment considerations
Investment Considerations
  • Sopharma presents a good opportunity for a strategic buyer to enter and expand its market share in Bulgaria as well as CEE countries. Its strong growth over the years, coupled with its effective and safe production facilities, makes Sopharma an attractive target for the acquirer.
  • For a strategic investor interested in diversification, Sopharma might be a potential target given the company’s subsidiaries
  • With its modern production facilities Sopharma has achieved economies of scale which might be of high importance to the acquirer
  • Publicly Traded on the Bulgarian Stock Exchange
  • An acquirer can benefit from technological/information systems, given the company’s plan to implement enterprise management system
why is the net income decreasing
Why is the Net Income decreasing?
  • Opening of new modern factory in Sofia
  • Development of new products (Tribestan, Vita Plus, Ambroxol)
  • Well established and known company in the market
  • Constant growth in the sector and in the company
  • Big synergy (modern facilities, patents)
  • Sopharma has a lot of subsidiaries in and out of the country. Key target for expanding in CEE
  • 13 factories and over 150 machines
  • Ministry of Foreign Affairs of Denmark, The Trade Council

Pharmaceutical and Healthcare Sector, Bulgaria

  • Sopharma Pharmaceuticals, Official Website


  • Sopharma Consolidated Financial Statements, Official Website

Year 2010-2011