13.05.2010 10:00:00 CET

Bosnalijek business results in the first quarter of 2010

In the first quarter of 2010 Bosnalijek d.d. (Bosnalijek) realized total income of 21,7 million KM out of which 15,1 million KM was realized on the BIH market and 6,6 million KM on foreign markets.

Domestic market has recorded an uncontrollable drop in drug prices caused by non-existence of a system for determination of the prices of the drugs financed from obligatory health insurance funds. As a consequence, in the first quarter of this year Bosnalijek recorded a drop in income of 11 % as compared with the same period of the last year.

On export markets the realized income was at the level of the one from the first quarter of 2009. The leading export market at present is Russia, however significant growth rates have also been realized in Ukraine and Croatia totaling 224,2 % and 66,5 % respectively.
Profit before depreciation, interest and tax amounted to 3,5 million KM, while the realized net profit totaled 1,1 million KM for the first period of this year.

Total value of Bosnalijek assets as of March 31, 2010 amounted to 174 million KM with a 0,3 increase as compared to December 31, 2009. Total liabilities have been decreased by 1 % in comparison with the previous period and total 59 million KM out of which short-term liabilities amount to 54 million KM and long-term ones 5 million KM. The value of Bosnalijek capital has been increased by 1 % as compared to the previous period and totals 115 million KM.

Despite slowed sales dynamics in the first quarter and expectations that the year 2010 will also be marked by all the negative effects of the global financial crisis in the pharmaceutical sector, The Company's Management envisages that the income from sales will be at the 2009 level with double digit export growth rates and net profit at the last year's level.