EMS invests to strengthen leadership
Valor Econômico
EMS, the biggest pharmaceutical laboratory of national capital, will invest nearly R$ 600 million (US$ 348.8 million) in 2010 to promote its expansion in the country and consolidate its leadership in the segment of generic drugs. These investments will be mostly concentrated, in research and development and brand creation, said Waldir Eschberger Júnior, Market Vice President of the group to Valor.
The investments in research and development are considered strategic for the group, which should allocate nearly R$ 150 million (US$ 87.2 million) in innovation, which allows greater competitiveness for the group in the domestic market. The company also intends to consolidate its leadership in the market of generic drugs in the country - EMS oscillates between the first and second places in this segment, which corresponds to nearly 50% of the earnings of the group. "EMS is present in all municipalities of the country [through distribution]", affirmed Eschberger, reminding that a great part of the investments of the company will also be intended for marketing and sales force. Even though it is a leading manufacturer, the company believes it needs to spread its name in the market.
With gross sales of nearly R$ 2 billion (US$ 1.1 billion) in 2008, according to data audited by IMS Health, the group projects growth of 25% in sales in 2009, and it may reach R$ 2.5 billion (US$ 1.45 billion) in earnings. The company has 6% of its net earnings (value it usually does not disclose) assigned to investments in R&D. In brand building, which includes marketing and sales force, the percentage gets to 27%. For investments in its plants, the amount corresponds to 2%. The company should keep the pace of investments in the coming years so as to grow 30% a year.
Headquartered in Hortolândia, interior of São Paulo, the company also has a productive unit in São Bernardo do Campo, in the Metropolitan Region of São Paulo, and a logistics center in Jaguariúna (SP). In 2008, the company ended the year with 160.7 million sold units. The capacity is for 360 million units/year. "We are a Brazilian multinational company, with units in Portugal, Italy and Spain, through partnerships", said Eschberger. The company's branch abroad is Germed Farmacêutica.