UPDATE 1 – Czech Zentiva's Romanian Arm Net Profit Drops 86% in Jan-Sept

A fall in population's purchasing power and respectively lower consumption of drugs are reflected in a 17% fall of over-the-counter drugs market and much lower-than-expected performance of generic drugs market, Zentiva said in a statement commenting on its nine-month performance.

Zentiva added that the company's costs rose over the review period due to higher prices for raw materials and unfavourable fluctuations of the exchange rate.

Company’s total revenue decreased to 149.5 million lei in January-September from 168.6 million lei a year earlier. Total costs grew to 144.5 million lei in the first nine months from 139.4 million lei in the same period last year.

Zentiva S.A. said earlier it expects a gross profit of 20.63 million lei this year, down from 30.07 million lei in 2008.

The company ranked as Romania's sixth biggest drug maker with a market share of 3.7% in the twelve-month period through June 30, 2009, according to data of market researcher Cegedim Romania.

Zentiva shares closed unchanged at 0.64 lei on the Bucharest Stock Exchange on Monday.

(1 euro=4.297 Romanian lei)