November 12 (SeeNews) - German pharmaceutical group Stada said on Thursday it expects its sales in Serbia to fall this year after dropping 23% in the euro currency through September due to weak demand.
In Serbia, the Group's sales remained nearly stable in euro at 144.5 million last year, data from Stada's 2008 annual report showed.
The company's sales in Serbia totalled 78.7 million euro ($117.6 million) in the first nine months of 2009. In the local currency dinar, the sales decline over the review period was 9.0%, the company said in its nine-month financial report posted on its website.
“[...] for fiscal year 2009 overall it is no longer expected, from today’s perspective, that the Group in Serbia will still be able to achieve the sales level of the previous year; rather, a sales decrease must be expected here.”
Generics, the company's biggest product category in Serbia, generated 61.4 million euro in sales through September, down from 81.7 million euro a year ago, and contributed 78% to Serbian Group sales, the statement added.
Stada said the liquidity situation of local wholesalers in Serbia remains tense due to the macroeconomic framework conditions of the global financial and economic crisis.
Against the backdrop of the current economic situation in the country, increasing regulatory price pressure in Serbia is thus under discussion and further payment defaults cannot be ruled out. Against this backdrop, the Group continues to focus on cost reductions in operating business activities in Serbia, it added.
In Serbia, it remains open as to when the very difficult economic conditions there will again allow significant growth, the statement said.
In 2006, Stada completed the 494 million euro acquisition of Serbian drug maker Hemofarm (www.hemofarm.com).
($=0.669 euro)