Business strategy
Barkan-Farma SRL will market its products in the Eastern Europe and Central Asia regions. The Company's strong business connections, a well-developed network of pharmaceutical product dealers, favorable regulatory requirements, and inexpensive registration will allow Barkan-Farma to gain a substantial market share in this market in a relatively short period of time.
Entry Strategy
The Company has already registered and launched several of the products in Moldova. The choice of Moldova as a starting point for the company's activities was a strategic decision. In Moldova, Barkan-Farma can rapidly capitalize on the well-developed network of connections in the local medical community.
"Remarkable company history"
Barkan-Farma was born as a natural consequence of the synergetic collaboration between the top-notch Israeli and Moldavian biomedical research experts and the renowned Israeli drug development business acumen. For several years starting 1997, Mr. Barkan, the founder of Meditor Pharmaceuticals Ltd., managed clinical trials in the Republican Hospital in Kishinev and other hospitals in Moldova. During these studies a drug substance (the active ingredient of Raviten) was administrated to treat different acute hypotension conditions associated with trauma, epidural or general anesthesia and cardiac surgery procedures, including cardiopulmonary bypass. These studies accumulated substantial evidence of the drug safety and efficacy. The drug substance was successfully registered for therapeutic use under the name of Difetur® and it is now listed in the Moldavian Pharmacopeia, the national registered drug reference book. Outstanding clinical results, excellent vasopressing abilities and the stable effect it has produced made this vasopressing agent famous in the local medical community in a very short period of time.
"Rapid commercialization"
Barkan-Farma is the first to develop commercial products that comprise this therapeutic agent. In order to start marketing the products Barkan-Farma has obtained exclusive distribution rights from Meditor in return for royalties.
The company has already received regulatory approvals for marketing Ravimig, Raviten, and Raviset in Moldova. The products will be available in the local pharmacies and hospitals already in Q3, 2009. In order to obtain marketing approval for Ravirin, the Company is required to conduct clinical trials. Clinical validation of Ravirin is expected to be completed by the end of 2009.
During the many years of cooperation with the local pharmaceutical business experts, Mr. Barkan and Mr. Heifetz gained a deep knowledge of the local market and an outstanding network of personal and business connections. These connections have already proved to facilitate faster registration process and will definitely ensure rapid and successful commercialization of the Company’s products.
Business Growth Strategy
The key to the Company's success are:
· Strong diverse portfolio of products that comprises several lines of ethical and generic pharmaceuticals, cosmeceuticals and other exclusive health products
· Highly-integrated team of pharma business acumen and market experts with many years of experience on the local market and great business connections
· Well developed, robust distribution infrastructure
· Geographical expansion into rapidly growing, developing markets of the Eastern Europe and Central Asia.
The natural and generic pharmaceuticals products lines
Barkan-Farma plans to grow its product portfolio by introducing additional lines of highly promising products. The Company will market these products through the distribution channels and logistics facilities established for the sales of its ethical products. The Company will license a variety of generic, natural cosmeceuticals and dietary supplement (DS) products from the leading Israeli medicinal cosmetics and herbal formulas firms and DS manufacturers. Each and every product of this line will be certified and will meet the highest European standards. A brand conscious approach will be applied to the development of the packaging design for every product in order to offer its users convenience, discreetness (when needed) and pleasant experience.
The Company intends to market its products through the licensed dealers, sub-distributors, pharmacies and doctors. Dietary supplement and natural cosmetics products lines will also be distributed to the rapidly growing specialty natural products and specialized dietary supplements stores. The Company has recently participated in the region's largest exhibition "Beauty 2009" where it presented its three lines of cosmetic products Sebocalm, Leorex and Dr. Z's Flexi-Gel. Remarkably, the region's leading pharmacy products distributor, Vinamex, showed great interest in the products and was granted non-exclusive distribution rights. Barkan-Farma cosmetic products started selling in the local pharmacies already in Q2 of 2009.
Distribution Infrastructure
In order to build a robust distribution infrastructure in Moldova and accelerate market entry process, Barkan-Farma has established pharma logistics facilities with a centrally-located warehouse. The facilities received full approval and certification from the local authorities in February 2008.
Growth strategy: geographical expansion
Shortly after the launch of the products in Moldova, the Company will start registration of its products in Romania. On January 2007 Romania joined the EU, since then it has attracted many investors and large international companies because of its outstanding growth opportunities. The market growth rate is expected to increase further over the next few years as the benefits of EU membership are felt. The country's pharmaceutical market environment is considered to be one of the most attractive in Central and Eastern Europe.
Romania - the gate to the EU market
Another reason for this strategic choice is that registration documentation in Romania and Moldova is written in the same language and similar clinical data scope is required. This is expected to make the regulatory approval process less labor intensive. On the other hand, pharmaceutical legislation within Romania has been harmonized with EU rules and the whole process may take longer than in Moldova. However, once the products are approved for marketing in Romania, the process of receiving marketing approvals in other EU countries is expected to be faster. In order to establish operations in Romania, Barkan-Farma will raise additional funds from local investors.
By the time Barkan-Farma gains substantial sales revenue and population data in Moldova, it will initiate registration process in Ukraine and Russia. This is expected to occur in 2011-2012. The registration process in these countries may take longer and is expected to be more expensive. It appears that the Company will be required to perform Good Clinical Practice (GCP) studies for each of the products. In order to facilitate the registration process in these countries, Barkan-Farma may enter into collaboration and distribution agreements with the leading distributors in each country. These partners may share or fully cover registration and clinical trial costs in return for exclusive distribution rights.
In order to start marketing its products in Kazakhstan and Uzbekistan, Barkan-Farma will enter into distribution agreements with the leading dealers in these markets. Registration and clinical data accepted by Russian authorities, as a rule, meet the requirements of the local authorities. The Company will prospectively be required to pay only for the registration of the products. Alternatively, all the registration and license costs will be incurred by a prospective local distributor in return for the exclusive distribution rights.
