Hexal To Improve At Home And Invest Abroad

The German generics producer, Hexal AG, is boosting investment abroad and focusing on product innovation in an increasingly competitive market. Andreas Struengmann, who shares ownership of the company with his brother, says there is enough room for Hexal "between Bayer and Ratiopharm."

While the company has decided not to get involved in basic R&D, it has decided that it will not be seen as just another typical generics producer. Within 10 years, the Struengmann brothers have created an enterprise with sales of some 500 million Deutschemarks ($328.1 million) in 1996, and turnover is forecast to reach 1 billion marks in 2000.

Operating profits are described as reaching a level of 10%-15% of sales in recent years. Total sales, including those generated by foreign interests, will be around 700 million marks this year.