Dresden Drugmaker Plans Western German Offensive

Dresden-based drugmaking subsidiary of Asta Medica, AWD, is planning a marketing offensive in western Germany to increase market presence and awareness of its products. AWD sales fell in the year ended September 1994 from 327.3 million Deutschemarks to 316.5 million marks ($206.7 million) the year earlier. Pretax profits rose about 7 million marks to 42.6 million marks.

AWD executive chairman Claus Rueger says he expects 1995 sales to turn out at 1994 levels given the stagnating German drug market and uncertainty in trading with eastern European and CIS countries - especially with the Chechnya problems. AWD is current market leader in the five eastern German states, with a 5% share.

Gross export turnover last year of finished drugs were worth 75.5 million marks. Volume sales in the CIS area was some 52 million marks. Western German sales in contrast were worth only 5 million marks. The aim is to run an advertising campaign to boost western German volume to 20 million marks and break down the western perception that products from the eastern states are inferior in quality.