Jugoremedija AD, Zrenjanin - Company Profile

COMPANY PROFILE

AGENCY CONTACT:

Mrs. Aleksandra Jezdovic Ignjatovic E-mail: [email protected] Phone: +381 11 30 20 855 Fax: +381 11 30 20 816

« J U G O R E M E D I J A » A D , Z R E N J A N I N

GENERAL INFORMATION

Main identification data:

Full legal name: Jugoremedija – Fabrika Lekova, ad Zrenjanin

Identification Number: 08000034

Address: Pančevačka bb, 23000 Zrenjanin

Foundation Year: 1961

Director: Mr. Zdravko Deurić

Contact Person: Mrs. Ankica Malušić

Number of Employees: 467

Phone number: 023/ 559 500

Fax number: 023/ 541 615

E-mail address: [email protected]

Capital structure (%)

Capital Structure % of the total capital

Socially owned

State owned Share holders’ fund PIO Fund

41,92363 31,95600 9,96763

Cooperative

Private 58,07637

Core operating activities

- Activity Code: 2120 - Main Activity: Production of pharmaceuticals

Distance from the Company (km) to:

Belgrade 75

Regional Center 80

Main road 55

Port 80

Railway 4

Associated Legal Entities:

Share of other legal entities in Company’s equity

Share of the Company in other legal entities’ equity

Company name Form of

association

% of share in total capital

Company name Form of

association

% of share in total capital

Remevita Nova doo

Ownership 100

Luxol Ownership 74,815

PRODUCTION AND CAPACITY

Production of main products (quantities and value)

Quantities Value in 000 RSD Product

Unit 2007 2008 2009 2007 2008 2009

Trental 400 pack 2.647.535 4.009.326 291.012 325.022 482.364 41.335

Daonil pill pack 1.240.200 2.781.989 2.586.165 75.893 164.763 181.598

Enalapril pill 20mg

pack 172.977 776.753 57.863 39.463 176.051 13.707

Cilacil pill 20x1,2 mz

pack 395.722 360.353 284.033 106.869 97.510 82.351

Lasix pill 10x40 kg

pack 2.184.643 3.873.294 1.842.064 49.286 86.258 53.183

Enalapril pill 10mg

pack 173.113 484.876 56.582 26.671 74.030 9.052

Baralgetas amp pack 1.096.172 1.980.009 735.032 66.413 88.258 40.758

Baralgetas pill pack 503.874 1.007.168 487.905 58.429 84.696 55.237

Capacity utilization

Machine

(Production line)

Unit

Installed capacity

Real capacity

2007 (%)

2008 (%)

2009 (%)

GLATT/FETTA

Trental

pill/h 216.000 52.250 51,16 77,31 5,62

GLATT/FETTA

Daonil

pill/h 216.000 62.500 16,18 36,29 33,73

HUT/RONCHI

Cllacil 1,2

pill/h 50.000 17.000 12,65 11,52 9,08

TUN/EIS

Baralgetas

pill/h 12.000 11.000 14,44 26,09 9,68

GLAT/FETTA

Lasix

pill/h 216.000 62.500 9,50 16,84 8,01

The Company owns quality assurance certificate ISO 9001.

Main equipment (in 000 RSD)

Name

Type

and

purpose

Estimated

state

Year of

production

Purchase

value Amortized

value

Current value

Drying-room

GLATT-WST-CD 200h

Device for production of granules

Qualified pursuant to pharmaceutical regulations

1986 72.000

Device for shaping of pills

WILHELM FETTE-PERFEKTA 2100

Device for shaping of pills


1990 28.000

Device for coating of core GS-HT/M300

Device for coating of pills


1999 28.000

Sterilization tunnel

STRUNCK-TLQU 42

Device for sterilization of ampoules


1985 44.000

Device Device for preparations


1990 24.000

Cardboard machine Device for packaging of preparations


1990 36.000

Grinding machine Device for joint packaging of preparations


1986 6.400

Land and Buildings

Name and type of land Purpose Surface m2

Construction land 17.534,14

Plateaus 4.451,25

Parks 50.706,61

LAND TOTAL 72.692,00

Name and type of building Purpose Surface m2

Production facilities 9.250,00

Administration buildings 1.921.00

Warehouses 5.153,00

Power block 520,50

BUILDINGS - TOTAL 16.844,5

Ecology The Company is in compliance with all ecology regulations, prescribed by the Law.

REALIZATION

Movement in sale volume

Value in 000 RSD Product

2007 2008 2009

Trental 400 obrt 248.656 504.083 79.742

Lasix pill 10x40 mg 49.078 88.704 61.179

Daonil pill 30x5 mg 53.567 202.460 110.919

Enalapril pill 20x20 mg 67.754 175.817 9.412

Aminofilin ret. pill 8.612 61.187 69.750

Enalapril pill 20x10 mg 48.895 74.106 9.698

Cliacil pill 20x1,2 inj 93.854 100.579 *82.875

TOTAL 570.416 1.206.936 423.575

* Note: According to the decision no. 515-04-2606/2005-05, production of penicillin preparations is prohibited. The above sale was related to the existing stock. In future, the production of penicillin preparations in the existing facility cannot be expected. The relocation of space and equipment is necessary

Sale structure

Sale structure in % 2007 2008 2009

Domestic market 85 87 77

Foreign market 15 13 23

Total 100% 100% 100%

Distribution channels

Distribution channels % share

Direct sale

Wholesale 99.9

Retail 0.1

Intermediaries

ORGANIZATION, MANAGEMENT AND EMPLOYMENT

PRODUCTION

DEPARTMENT

QUALITY

CONTROL

SALE

DEPARTMENT

GENERAL MANAGER AND

OFFICE OF THE GENERAL

MANAGER

QUALITY

ASSRANCE

GENERAL

AFFAIRS

FINANCIAL

SECTOR

Number of Employees as of 31.12.2009.:

Working 405

Paid leave /

Unpaid leave /

Other (sick leave, vacation, etc.) 27

Total number of employees 432

Age structure of employees

Age -25 25-35 35-40 40-45 45-50 50-55 55+

Number 8 123 58 63 69 65 46

Average salaries (gross and net) in 2007, 2008 and 2009.

Year Gross Net

2007 39.393,68 28.219,97

2008 45.503,95 32.546,02

2009 46.914,55 33.596,44

SWOT ANALYSIS

Strengths:

• Drugs in the application of various therapeutic areas

• Strong potential for local development (Vojvodina, Serbia);

• Strong export opportunities; licensed agreements Aventis;

• No competition in several pharmacological groups of drugs;

• Groups of drugs intended for chronic patients have the highest demand in the market Opportunities:

• Completed factory and the introduction of GMP standards as a condition for export;

• Privatization for better position;

• The increase in demand for generic drugs Weaknesses:

• Insufficient development of marketing network of associates against the competition

• Lack of OTC medicines in the range Threats:

• Poor development of the pharmaceutical market

FINANCIAL INDICATORS

BALANCE SHEET (in EUR 000)

31.12.2007. 31.12.2008. 31.12.2009.

Cash and equivalents 3,275 1,449 14 Short-term operating receivables 3,492 1,552 938 Profit tax return 0 0 287 Short-term financial investments 381 799 499 Inventories 17,444 13,321 11,501 Fixed assets intended for sale and assets related to suspended operations 0 0 - VAT and accrued revenues 832 1,654 435 Deferred tax assets 108 197 2,053 Current assets 25,533 18,972 15,729

Subscribed capital unpaid 0 0 - Goodwill 0 0 - Intangible assets 554 48 626 Fixed assets 9,248 12,624 17,659 Long term investments 1,643 1,374 1,074 Non-current assets 11,445 14,046 19,359 Loss above equity (Loss for 2003) -

TOTAL ASSETS 36,977 33,018 35,088

Off-balance sheet assets 623 7,492 14,644

Suppliers 13,910 7,031 5,535 Short-term financial liabilities 1,101 3,802 4,600 VAT liabilities and other public revenues 209 80 28 Liabilities based on assets intended for sale and assets related to suspended operations - Other short-term liabilities and accrued costs 196 256 472 Profit Tax liabilities 742 1 Total short-term liabilities 16,158 11,169 10,636 Long-term borrowings 2,098 8,334 Deferred tax liabilities - Other long-term liabilities 887 - Total long-term liabilities 887 2,098 8,334

Long-term provisions - Initial and other capital 4,717 4,219 3,898 Subscribed capital unpaid - Reserves 5,097 4,558 4,212

Revaluated reserves 147 163 -

Non-realized profit based on securities -

Non-realized losses based on securities -

Retained earnings 9,970 10,899 9,940

Loss 1,933 Treasury shares 88.3286 - Total equity 19,932 19,750 16,117

TOTAL EQUITY AND LIABILITIES 36,977 33,018 35,088

Off-balance sheet liabilities 623 7,492 14,644 Note: The highlighted parts of the balance sheet are items prescribed by the regulations as of the 2008 balance sheets.

INCOME STATEMENT (in EUR 000)

2007 2008 2009

Sale incomes 11,406 18,937 6,202

Changes in inventories 2,560 623 (212)

Other operating income 25 7 33

OPERATING INCOMES 13,991 19,567 6,023

Costs of goods, material and services 7,436 11,114 2,783

Wages, salaries and other personal indemnities 4,040 3,617 3,140

Depreciation costs 1,017 965 1,010

Other operating expenses 1,900 1,753 1,330

OPERATING PROFIT/ OPERATING LOSS (403) 2,118 (2,241)

Financial incomes 345 798 316

Financial expenses 675 3,175 1,978

Other incomes 12,111 4,458 588

Other expenses 3,846 1,193 503

PROFIT / LOSS FROM REGULAR BUSINESS OPERATIONS BEFORE TAXATION 7,532 3,006 (3,818)

NET PROFIT SUSPENDED 3 -

NET LOSS SUSPENDED (79) (65)

PROFIT / LOSS BEFORE TAXATION 7,453 3,009 (3,883)

Tax expenses for the period 984 444 1

Deferred tax expenses for the period -

Deferred tax income for the period 63 108 1,910

Personal earnings paid to employer -

NET PROFIT / NET LOSS 6,532 2,673 (1,972)

NET PROFIT DUE TO MINORITY INVESTORS - - -

NET PROFIT DUE TO OWNERS OF THE PARENT LEGAL ENTITY - - -

INCOME PER SHARE - - -

Initial income per share - - - Decreased income per share - - -

LOCATION OF THE ENTERPRISE

A) Information contained in this document is based on the data received from the company, and as such has not been verified by the Privatization Agency. Accordingly, the Privatization

Agency shall have no liability with respect to the accuracy and validity of the information contained herein.

B) Pursuant to the law, enterprises from the Republic of Serbia were obliged as of 2004 to prepare Financial Statements in accordance with the International Standards of Financial

Reports (ISFR).

C) For the indicated periods, commercial exchange rate has deviated from the official exchange rate. Commercial exchange rates used for calculating the above stated financial statements were as follows:

Income Statement was calculated by using the median annual exchange rate.

2009: 1EUR = 93.9366 RSD; 2008: 1 EUR = 81.4672 RSD; 2007: 1 EUR = 79.9640 RSD. Balance Sheet was calculated by using the exchange rate valid on 31. December of the indicated year.

2009: 1 EUR = 95.8888 RSD; 2008: 1 EUR = 88.6010 RSD; 2007: 1 EUR = 79.2362 RSD.

Jugoremedija, Zrenjanin

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Jugoremedija AD, Zrenjanin - Company Profile