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Annual Review 2016

Letter to the shareholders

Mr. Donev 

Dear partners,

With the completion of the most successful year after the crisis, we welcome the 85th anniversary of Sopharma AD, this is a reason to strive to become even better in the care for people's health, to affirm the tradition in the production of quality Bulgarian medicines following  international recognized standards and technologies and continue to develop as a Group of companies in the healthcare sector.

The excellent financial results we have achieved over the past year give us security and allow us to make ambitious plans for the future because we see that we are moving in the right direction. Our sales on the Russian and Ukrainian markets have stabilized not only for macroeconomic reasons but also due to the changes in the team and work organization we made at the beginning of the year. As a result, we have achieved 20% growth on export markets. In Bulgaria, we are still expecting the reform in the sector that will allow us to truly develop, but despite the circumstances, our sales have increased by 3%. We finalized the merger of “Medica” AD into “Sopharma” AD and in the meantime we received the approval of the Financial Supervision Commission to merge another of our subsidiaries the pharmaceutical producer – “Unipharm” AD. Consolidation in the Group leads to cost optimization, better organization, centralization of major marketing and sales activities, and better performance across markets.

In 2018, we expect the next phase of Tabex's US registration conducted by our partner Achieve Lifesciences, namely Phase 3, to be launched. After its completion, we will have greater clarity about the prospects of the project.

I want to thank you again for your trust and support!

Ognian Donev,PhD,
Chairman of the Board of Directors and Executive Director of Sopharma AD

Key Financial Results

BGN '000
BGN '000
Sales revenues 877,085 874,984 0.24%
Deprecation and amortization (EBITDA) 73,656 62,766 17.35%
Operating profit 44,951 36,440 23.6%
Net profit 54,902 22,600 142.93%

BGN '000 
BGN '000 
Non-current asset 416,599 401,484 3.8%
Current asset 422,622 434,143 2.0%
Equity 491,223 457,640 7.34%
Non-current liabilities 53,842 62,492 -13.84%
Current liabilities 314,156 315,495 -0.43%

EBITDA/sales revenue 8.4% 7.2%
Operating profit/Sales revenue 5.1% 4.2%
net profit/Sales revenue 6.3% 2.6%
borrowed capital/Equity 0.75 0.83
Net debt/EBITDA, annualized 2.82x 3.57x

Significant Events

21 January

Sopharma AD deposited with the Finacnial Supervision Commission an agreement for termination of the Contract for transformation through merger between Sopharma AD and Momina Krepost AD.

5 March

The Company bought 1 000 own shares representing 0.00076% of the share capital of the Company.

8 May

Sopharma AD notifies that it took the decision to establish the "Sopharma Ukraine OOD" company with headquarters in Kiev, Ukraine and with share capital of 1,000,000 / one million / UAH.

16 June

The General Meeting of Shareholders of Sopharma AD was held.

4 July

For the first six months of this year, revenues from sales decreased by 10% compared to the same period of 2015, including 3% decrease of domestic sales and a 15% decrease of export sales.

20 September

Information about Annual Meeting with Investors.

7 October

SOPHARMA AD informs that as a result of its intention to express interest in acquiring a commercial company operating on the territory of the Republic of Moldova, as a first step Sopharma AD filed a request for approval of concentration with the competent authorities in the Republic of Moldova.

4 November

The Board of Directors of Sopharma AD decided to purchase up to 100% of the capital of “Veta Pharma” AD for a price not exceeding 2.12 BGN per share.

18 November

Sopharma AD (the “Company”) announces that on 18 November 2016 the Company received a notification for the acquisition of 505 364 shares, representing 0.37% of its capital, by ZUPF Allianz Bulgaria. After the transaction the share of ZUPF Allianz Bulgaria in the capital of Sopharma AD reached 5.17%.

15 December

Sopharma AD hereby notifies that on 14 December 2016 Sopharma AD filed with the Financial Supervision Commission a tender offering for the shares of all other shareholders in Unipharm AD.


New Development and Products


New Products

with marketing authorizations for the period January - December 2016. Marketing authorizations for six new products have been issued.

Desloratidin film tablets

Ibandron film tablets

Amlodipin tablets

Vederal drops

Deavit drops

Tuspan syrup


Expected in 2017

Three to five new products are expected to be introduced by the end of the 2017.



Over 15 production processes and technologies are in the processes of transfer, validation and optimization. Pharmaceutical development is carried out of over 10 new products for the Company.





Foreign markets
Efforts are focused on retaining and increasing the share of the company on the main markets (Russia, Ukraine and Poland) as well as establishing and extending presence in other countries (USA, Central and Est Europe and the Caucasian region).
New products
Consistently launch new pharmaceutical products on all the markets in which the Company sells its products in order to expand its product portfolio.
Organic growth
Grow organically in selected new markets to become a strong regional player with stable, geographically diversified revenues
Optimization of production capacity
Optimization of production capacity and construction of new ones
Intra Group Integration
Further consolidate and integrate the Group to optimize its cost structure, control entirely the production chain and benefit from potential synergies