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Annual Review 2017

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 1,017,105 877,085 16.0%
Deprecation and amortization (EBITDA) 85,944 73,656 16.7%
Operating profit 55,836 44,951 24.2%
Net profit 45,772 54,902 -16.6%

BGN '000 
BGN '000 
Non-current asset 468,369 416,599 12.4%
Current asset 512,364 422,622 15.8%
Equity 503,110 491,223 2.4%
Non-current liabilities 80,061 53,842 48.7%
Current liabilities 397,562 314,156 26.5%

EBITDA/sales revenue 8.4% 8.4%
Operating profit/Sales revenue 5.5% 5.1%
Net profit/Sales revenue 4.5% 6.3%
Borrowed capital/Equity 0.95 0.75
Net debt/EBITDA, annualized 3.0x 2.8x

Significant Events

6 January

 2017 starts with good news concerning the registration and further development of our product Tabex 

31 January

Medica AD and Sopharma AD signed a contract for transformation through merger

27 February

Sopharma AD announces that the Competition Council of The Republic of Moldova allows the acquisition of over 51% of RAP Pharma International SRL by Sopharma AD

20 March

Sopharma AD and Medica AD signed an annex to the Contract for transformation through merger reflecting the comments by the FSC

18 April

Sopharma AD acquired 51% of the Moldova pharmaceutical distributor RAP Pharma International

25 April

The Financial Supervision Commission approved the Contract for transformation through merger and the additional annex to it between Sopharma AD and Medica AD

2 June

AGM of Sopharma AD

21 July

Sopharma AD acquired 75% from the capital of the successful start-up for development and registration of food additives Aromania

9 August

The transformation through merger of Medica AD in Sopharma AD has been registered with the Commercial Register

14 September

Unipharm AD and Sopharma AD signed a contract for transformation through merger

3 November

Annual Meeting with Investors

8 December

Sopharma AD received two notifications from Rompharm Company OOD for the sale of shares from the capital of the company

20 December

Sopharma AD received an approval from the FSC of the contract for transformation through merger of Unipharm AD in Sopharma AD


New Development and Products


New Products

with marketing authorizations for the period January - December 2017. Marketing authorizations for three new products have been issued.

Amlodipine tablets 5 mg

Amlodipine tablets 10 mg

Doporizone Oinment


Expected in 2018

Three to six new products are expected to be introduced by the end of the 2018.



Over 30 production processes and technologies are in the processes of transfer, validation and optimization. Pharmaceutical development is carried out of 4 new medicinal products and one active substance.





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