Hexal Pharma To Expand Abroad

The German generics manufacturer Hexal Pharma is to invest in expansion abroad as well as preparing for a stock exchange listing, it has revealed. The company, which was established in 1987, is now a leading generics producer in Germany, with 1994 sales rising 20% to 374 million Deutschemarks ($255.6 million). Group sales were 450 million marks, up 15.4%.

Hexal recently acquired two companies, Dr Winzer of Constance and the phytopharmaceuticals company Jossa (now known as Biocur) of Steinau. Some 10% of sales growth last year came from a series of new products, especially cardiovascular drugs. Despite the current decline in pharmaceutical prices, Hexal has indicated that it expects sales in 1995 to improve 10%.

Thomas Spruengmann, Hexal's owner and director, said that after patent expiry, drug prices used to spiral downward over a three-year period, whereas nowadays it only takes around three weeks. To counter this trend, more investment is being made in R&D, he added.