Even without a pandemic, the pharmaceutical market in Bulgaria continued to grow in 2022, with the top twenty companies from the sector in the annual K100 ranking by Capital reporting average revenue growth of 9.2%. Moreover, two of the companies with the highest turnover in the sector - drug distributors Sopharma Trading and Phoenix Pharma - were past the BGN 1 billion (EUR 511 million) mark in revenues for the first time.
Purchases of medicines and food supplements by pharmacies and hospitals in Bulgaria reached BGN 5.4 billion in 2022, up 9.7% compared with the previous year, according to data from international analysts IQVIA. There is no analysis yet of how inflation is affecting drug prices, but IQVIA's research suggests that the rise in prices is outpacing that in the number of packs sold, meaning there is an increase in the price of drugs.
Merchants on top
Traditionally, pharmaceutical wholesalers have been at the top of the rankings, with Sopharma Trading the consistent leader for more than 10 years. According to Ventsislav Marinov, CEO of Sopharma Trading, the significant investments made during the year in the logistics chain are the basis for the revenue growth, which is above the market average.
"We have completed several major projects related to the utilization of our warehouses, integration with our SOpharmacy chain of pharmacies and the introduction of the latest generation forecasting and transport planning and management systems. As a cumulative result, we delivered 1.8 million orders to our pharmacy and hospital market customers in 2022, up approximately 13% on the previous year. Our international expansion in Serbia continued with a complete restructuring of our operations, with positive results already visible in the first quarter of 2023. Very soon we will open a new integrated warehouse in Serbia," Marinov says.
The only foreign investor in the wholesale of pharmaceuticals, German distributor Phoenix Pharma, comes second in the ranking with revenues of over BGN 1 billion in 2022, marking growth of 9.7% year-on-year, just above market average.
"As an integrated healthcare services provider, we have invested in numerous additional value-added services for our customers and patients alongside distribution. Some of the well-known services are our health software solution Pharmacy Expert, the contact center for customer service, and the supply of more than 250 exclusive products to the Bulgarian market," commented Nikolay Kolev, Managing Director of Phoenix Pharma. "We launched several campaigns related to patient services in our BETTY partner pharmacies. In parallel, we introduced our new BENU online pharmacy on the Bulgarian market," Kolev says.
Third is Bulgarian distributor Sting, also recording above-average market growth. Sales growth was also recorded by Pharmnet, the distributor from the group of businessman Veselin Mareshki, which mainly supplies the chain of pharmacies bearing his name, other pharmacy outlets and hospitals.
Next on the list: factories and pharmacies
Veterinary products manufacturer Biovet and its holding company, Huvepharma, recorded a more moderate revenue growth. The group achieved sales of more than BGN 770 million from sales of its medicines and food supplements for animals in Bulgaria and abroad. In the case of Biovet of the Domuschiev brothers Kiril and Georgi, the profit has halved compared to 2021 due to increased costs, including exchange rate losses.
The pharmaceuticals manufacturer Sopharma recorded higher growth and profitability rates. The company had a visibly very successful year on the Bulgarian and global markets, and its profit reached nearly BGN 40 million. In the words of Ognyan Donev, chairman of the board of directors of Sopharma and its largest shareholder, in 2022 the company registered two new products in its portfolio of 211 drugs. The war in Ukraine has affected the company directly as they have plants there.
For the first time, the pharmacy chain owned by Sopharma Trading is included in the ranking of pharmaceutical companies. "During the year at SOpharmacy, we continued to rebrand the pharmacies we had acquired at the end of 2020, completed the implementation of a new POS system, and in the last quarter we 'rebooted' our regional expansion with the opening of several entirely new sites. It is the entry with new outlets in different Bulgarian cities that was among our priorities in 2023. In 2022, we focused on the creation of our SOpharmacy APP mobile application, which we used to make pharmacies even more accessible to customers. So, on a monthly basis we have about 1 million users in our digital channels," Marinov notes.
In 2022, Balkanpharma Dupnitsa, the largest plant of Israeli company Teva in Southeast Europe located in southwestern Bulgaria, saw a decline in sales of 3.61%. On the other hand, Teva's trading company in Bulgaria, Teva Pharma, achieved growth of 3.86%, as sales exceeded BGN 169 million.
Sofia-based Alvogen Pharma Trading Europe, which distributes its own medicines to the region, including Bulgaria, as well as those of Zentiva, which acquired the company in 2019, has seen another year of declining sales and a drop in operating profit.
The most dynamic among marketers
The growth leader in the ranking in 2022 is the wholesaler of medicines Alta Pharmaceuticals. Its owner and managing director Todor Dochev commented that in the past year Alta Pharmaceuticals continued the recent trend of double-digit growth in turnover (29.33%), outpacing the growth of the pharmaceutical market.
"Our success is due to the team's determination to continuously increase our direct contracts with drug manufacturers, dermocosmetics and nutraceuticals, and to build on the portfolio with strategic products. Last but not least is the expansion of the company's operations with pre-distribution services and the creation of our own exclusive brands department," he commented.
Champions in profitability
In 2022, for the first time, the traditional profitability champion in the rankings, Romfarm, which manufactures in Romania and releases medicines in Bulgaria on their way to other export markets, trails another entrant, drug trader Bulpharma. This Bulgarian wholesaler achieved profitability of 46% on growing revenues that exceeded BGN 134 million. Bulpharma, owned by Dr. Mikhail Tikov, supplies the largest hospital chain in Bulgaria at the moment, as well as a number of pharmacies, all owned by him.
Another good year
For the first time Roche Bulgaria, the wholesaler of medicines that represents the Swiss concern in Bulgaria, has seen a drop in sales. It is due to the entry of cheaper biosimilars in areas where the company held patent rights until 2022.
Japan's Astellas saw a double-digit growth in sales of its originator medicines in Bulgaria for another year.
In 2022, pharmaceuticals wholesaler Commercial League also posted a double-digit sales growth. In addition to the medicines made by its own manufacturer, Tchaikapharma - High Quality Medicines (with revenues of BGN 44 million), the distributor also supplies medicines and medical devices of other companies to pharmacies and hospitals, including the group's own clinics - Heart and Brain, Mom and Me, and specialized cardiology hospitals under the umbrella of the Bulgarian Cardiology Institute.
Even without a pandemic, the pharmaceutical market in Bulgaria continued to grow in 2022, with the top twenty companies from the sector in the annual K100 ranking by Capital reporting average revenue growth of 9.2%. Moreover, two of the companies with the highest turnover in the sector - drug distributors Sopharma Trading and Phoenix Pharma - were past the BGN 1 billion (EUR 511 million) mark in revenues for the first time.
