Krka is one of the leading European generic producers

The public limited company, Krka, d. d., Novo mesto is one of the leading generic pharmaceutical products in eastern, central and western Europe. It is one of Slovenia’s largest exporters, selling 87% of its products in over 70 countries, stretching from Vladivostok to Lisbon.

It is an established brand, which has gained the trust of the medical profession and end users alike. Krka is continually acquiring new market authorisations for a wide range of pharmaceutical products, with the quality, safety and efficacy guaranteed by the respecting and implementing valid guidelines on Good Manufacturing Practice (DPP/GMP) the ISO standards 9001/14001, total quality management (TQM), the foodstuff safety certification system (HACCP), and the Occupational Health and Safety System (OHSAS).

Krka has strengthened its international marketing and sales networks – which already includes 36 companies and representative offices abroad – with its own production and distribution centres in Croatia, Germany, Poland and the Russian Federation.

Krka’s successful presentation of its brand identity and value added to various target groups is confirmed by the numerous Slovenian and international awards and recognitions it has received. Some of the most notable awards include the 2007 Slovenian Business Excellence Award (PRSPO) for quality, the 2006 Slovenian Chamber of Commerce and Industry award to the Krka Chief Executive and President of the Management Board, Jože Colarič, for business and enterprise achievements, the Portal 2007 award for the most transparent public limited company in Slovenia, the title of best employer in Slovenia (from the Kariera 07 fair), first prize in the 2007 Annual Report of the Year award, the title of ‘Superbrand’ for Krka’s corporate brand and the Septolete and Sun Mix brands, a TOP 10 recognition for systematic investment in innovative solutions for the perindopril-erbumin formulation, as well as a wide range of other awards for specific Krka products.

Business and products

Krka’s long-term strategy is based on the development and sale of high quality generic pharmaceutical products, which it markets under its own brands, produced from attested active ingredients, using advanced methods and the latest technology. Krka provides its customers with high quality, safe and effective pharmaceuticals with added value.

Prescription pharmaceuticals represent the largest proportion of overall sales (81%). The creation of the product range is closely tailored to match the diseases that most frequently affect people today. The four key indication areas are cardiovascular diseases, infections, diseases of the alimentary tract and metabolism, and diseases of the central nervous system.

Prescription pharmaceuticals are followed by self-medication products (11%), animal health products (3%), cosmetics (1%), which are the fruit of Krka’s own pharmaceutical knowledge, and health and tourism services (4%) in the Terme Krka subsidiary.

Markets

Krka is Slovenia’s leading pharmaceutical producer, and 13% of its total product and service sales are generated on the Slovenian market. Krka’s largest markets are markets in its Region Central Europe, which represents 26% of overall sales, which includes the key market of Poland, which is followed by the Czech Republic, Hungary, Lithuania and others. The next largest region is East Europe representing 23% of overall sales, which includes the key market of Russian Federation. Other major markets in the region are Ukraine, Kazakhstan, Uzbekistan, Georgia, Azerbaijan and others. Region South-East Europe, where Croatia, Romania and Bulgaria are the main markets, generates 17% of overall sales. Region West Europe and Overseas Markets is growing in importance, and represents 21% of overall sales. The most important markets in this region are Germany, the United Kingdom, the Nordic states, and Italy. Krka also markets its products in Africa, the Arabian peninsula, and the East Asian states. The highest growth in 2007 was achieved in Regions West Europe and Overseas Markets, Central Europe and South-East Europe.

Sales and plans

Sales by the Krka Group, which employs over 7,300 people, were worth over EUR 780 million in 2007, an increase of 17% on 2006, while the net profit was over EUR 130 million. The Krka Group’s product and services sales outside Slovenia were worth EUR 680 million, which represents 87% of the total figure.

In 2008 the Krka Group plans to generate sales revenues amounting to EUR 950 million, and a net profit of EUR 160 million, with investment spending also worth EUR 160 million. The Krka Group plans to have 7,700 employees by the end of 2008.

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Krka intends to extend its international marketing network in future, while appearing on the market with modern generics, produced in its own production plant at home and abroad. Through high-level investment in knowledge and creativity, Krka’s 7,000-strong staff will realise its strategic objectives and build long-term relations with its partners.