At the time of our investment, Romanian pharmaceuticals sales at around $1.2bn per year were low by European standards, but growing rapidly at some 20% per annum. This was the result of increasing purchasing power, improved health education, better living standards and higher life expectancy. Highly fragmented, the market also presented many acquisition opportunities. Competition from both domestic drug producers and multi-nationals keen to break into such an attractive emerging market was intense. Romania’s then impending candidature for future EU membership was also a catalyst for growth, triggering the government to decree that domestic pharmaceutical producers had to meet European standards.
"We understood that the key to Terapia’s strategic attractiveness would ultimately lie in its ability to position itself as a dominant local producer and supplier. International ambitions were not discarded, but reprioritised. Instead, our energies went into building a commanding strategic position in the Romanian market."
- Emma Popa-Radu, Advent Managing Director