In today’s recession-affected economy there are few businesses that can boast stable operations and say they invest, employ and increase revenue, let alone export rates. For 21 years the Rijeka-based pharmaceutical company JADRAN-GALENSKI LABORATORIJ (JGL) has been an excellent example of continued and exclusively organic growth. In 2012 the company continued to enjoy success resulting from its investments in the development of new products and strengthening the portfolio on existing markets, opening new markets and raising competence in the system so that the products delivered to customers in all markets would meet the set objectives.
According to the preliminary, unofficial results, during the previous year JGL enjoyed an 19% growth in the net sales, and the export rate in the overall company revenue amounted to 75%. In accordance with the basic strategic goal – globalization, today JGL is present in some 30 countries across Europe, the US and the former USSR, while the Russian market continues to be the strongest one. This is further corroborated by many awards that the company has received over the years as an exporter, among which the latest one is the Zlatna kuna plaque for the most successful company of the Primorje-Gorski kotar county in the large companies category, awarded in late 2012.
JGL considers the decision to start operations in the Russian market, followed by Ukraine and Kazakhstan as one of its crucial strategic decisions. In the beginning, that is, late 1990s, the company focused on creating the requirements for market positioning. The people who worked on this remain a part of the company, mainly in Russia, from where the operations spread to other CIS countries. It was quite difficult for the company to find its place on the already exceptionally developed market featuring almost all multinational pharmaceutical companies. Nevertheless, JGL managed to adapt its production portfolio to the characteristics of the market and quickly became recognizable in the selected markets and therapy segments, especially in the seawater-based nasal decongestants segment and achieved enviable growth dynamics.
Today JGL is 62nd among 800 producers present in the Russian pharmaceutical market, and its main product, the Aqua Maris nasal spray is among top 50 of more than 10,000 products registered in the Russian market! JGL’s representative office in Russia has 163 employees, in 2012 it achieved approximately EUR 42 million in sales and it has some 30 registered products in various legislation categories. This result is achieved by “covering” only some 10% of the clients – pharmacists, general practitioners and specialists, and by focusing on several therapy groups – ear, throat and nose, gynaecology, dermatology and ophthalmology. The people in JGL are aware that all of this is first and foremost a testament to the large and almost inexhaustible potential of the Russian and other CIS markets, in which JGL still has many possibilities for growth and expansion.
The growth of export rates is due not only to the Russian market, but also to the expansion on the former USSR territory (CIS), Ukraine and Kazakhstan, which also have significant market potential. JGL’s representative office in Ukraine was open in 2004; it currently has 53 employees and in 2012 it experienced approx. EUR 6 million in sales. The Kazakhstan representative office was open two years later, it has 33 employees and a little under EUR 3 million in annual sales. Through its partners the company is also present on other countries of the region such as Georgia, Azerbaijan, Armenia, Belarus, Uzbekistan, Mongolia, Kyrgyzstan, Tajikistan and Moldova, which results in additional sales of over EUR 880,000. It is no secret that, based on the acquired positions, JGL continues to expect significant growth on the CIS markets.