Academia de Studii Economice

Faculty of Business Administration in Foreign Languages – English

CASE STUDY
S.C ANTIBIOTICE S.A.

Members: Ancuța Mihaela, Botescu Theodor, Cazan Alexandra

Group 103, Series A
Professor: Dr. Stere Stamule
Fundamentals of Business Administration
29th of December 2020
Contents
I. Introduction: .............................................................................................................................................. 3
II. History of the company:............................................................................................................................ 4
III. Departments of the company: ................................................................................................................. 5
1. Human Resources: ..................................................................................................................5
2. Marketing: ..............................................................................................................................6
3. Finance ...................................................................................................................................7
4. Accounting .............................................................................................................................8
5. Service....................................................................................................................................8
IV. Key Performance Indicator: ..................................................................................................................... 9
V. Challenges - Recommendations and solutions: ...................................................................................... 10
VI. Conclusion:............................................................................................................................................. 10
VII. References: ........................................................................................................................................... 11
I. Introduction:

Situated in Iași, the Antibiotics SA Factory is a public pharmaceutical company which is the
third largest drug producing company in Romania and a large nystatin producer.

Since Penicillin, the first product manufactured in 1955, this company has manufactured
hundreds of pharmaceuticals. Today, Antibiotice SA is one of the most important Romanian
producers of generic drugs that continues to heal generations of people.

The company’s mission is to make their valuable medicines more accessible to patients,
physicians and pharmacists. The patients’ wellbeing is their best interest and they always put
their strength to the service of those who need support.
Antibiotice develops and produces generic drugs for human use (157 products), veterinary drugs
and the active ingredient Nystatin.

Their generic drugs are mainly intended to patients with infectious diseases, but also for
cardiovascular, dermatological, digestive and central nervous system related pathologies.

The company have been present with pharmaceutical products and Nystatin API in Romania
and other 75 countries around the world. In terms of Nystatin active ingredient production,
Antibiotice ranks first worldwide among the pharmaceutical manufacturers. In Romania,
Antibiotice S.A. continue to be the main manufacturer of anti-infective generic drugs, a
manufacturer with competitive medicines and affordable prices. The medicines are delivered in
hospitals – especially the anti infectives – contributing overall to significant savings for the
Romanian healthcare system.

The company has strong quality standards, their continuous development and expansion on
international markets were possible through consistent investments and implementation of
internationally recognized quality standards like: good Manufacturing Practice (EU-GMP),
certificate of compliance with European Pharmacopoeia (COS), Food and Drug Administration
authorization (FDA).
II. History of the company:

The Antibiotics Factory (Antibiotice SA) is one of the few industries built during the
communism that lasted after 1989. It is the first factory in the south-eastern Europe that has
produced peniciline, the production of streptomycin (active substance) and the first forms of
finished products begins in 1959.
In the 80’s Antibiotice already exported 50% of its output. The active ingredients manufactured
in Iasi became the basis for a wide range of medicines manufactured by local and foreign producers
worldwide. In the same period 44 patents were registered in the pharmaceutical industry and 600
technological innovations were applied in the manufacturing process.
In 1990, Antibiotice becomes the first Romanian producer to obtain the GMP certification for
the line manufacturing powders for injection.

Antibiotice shares (ATB shares) have been listed on the first category of the Bucharest Stock
Exchange. In 1997, Antibiotice became a joint-stock company (Antibiotice SA in Romanian.)
The company implemented an efficient quality assurance system that involves a strict control of
the manufacturing processes.
Today, Antibiotice SA Antibiotice begins the serialization of its pharmaceutical products. In
2019, the company was the first that did an export of serialized products to the USA, they also did
the Implementation of the Laboratory Management System (LMS). In the same year, Antibiotice
begins production of Levofloxacin Atb – the third antibiotic in the
fluoroquinolone class in the portfolio.
In 2020, Antibiotice became the first company in the pharmaceutical sector to join ARIR –
Romanian Association for Investor Relations.
III. Departments of the company:

1. Human Resources:

The human resources policy promotes diversity and equal opportunities in the processes of
recruitment, selection and integration of employees. Employees benefit from all the rights deriving
from the law, offering fair and equitable conditions of work and professional development.
On 30.06.2019 the average number of staff was 1415.
Due to the nature of the specific activities carried out in Antibiotice SA, the structure of the staff
on levels of education and professional training, the following:
Human Resources
Tertiary education: 600 employees (42, 4%)
Secondary education: 815 employees(57, 6%)

Higher Education – 43% (608 employees)

32 employees with PHD diploma 5,3% (32 employees)
Medium Studies 57%
Total 100% (1415 employees)
Fig. 1

Age range 20-30 30-40 40-50 50-55 Above 55 TOTAL

of years old years old years old years old years old (%)
Employees
Women (%) 4,07 11,91 20,99 11,91 6,61 55,48
Men (%) 2,83 8,35 16,99 8,13 8,21 44,52
Total 6.90 20,26 37,98 20,04 14,81 100
Fig. 2
 Fig. 3 Fig. 4

Of the total staff during 2010, approximately 60% was assigned to marketing, promotion and
sales, in order to maintain and develop the team to strengthen the company's leading position in
the drug market.

2. Marketing:

The marketing and promotion team consists of 150 doctors and pharmacists, who together
managed to bring the turnover to the level of 243 million lei, in 2018.
This team is structured pyramidally depending on the main therapeutic areas (anti-infective,
cardiovascular, nervous system and oncology) in: product manager, marketing analyst,
representative medical, sales representative. The responsibility on common objectives of the
marketing specialists and sales managers determined the identification of an efficient sales
structure, which led to a profit beyond expectations, the Antibiotics factory implemented a
complex mobile (CRM solution) designed for Romanian drug companies.

The new solution, specialized in the specific features of the pharmaceutical industry, allowed
over 100 medical representatives and Commercial antibiotics to report all medical promotion
operations in hospitals and pharmacies and make the best match between physician visits and
prescription level.
 3. Finance

The shares of Antibiotice SA are listed on the Bucharest Stock Exchange, Premium category,
since April 1997. In the same year, the company's shares were included in the BET (Bucharest
Exchange Trading Index). In 2015 the ATB shares entered the structure of the ROTX index
(Romanian Traded Index) of the Vienna Stock Exchange, and in 2017 the structure of the Dow
Jones Wilshire Global Total Market Index of the New York Stock Exchange.

This reflects the fact that Antibiotice SA is a solid company, developed on a solid economic
foundation.

Shareholding structure Shareholders Percent

Ministry of Health 53.0173%

SIF OLTENIA 13.5527%

Other shareholders 33.4300%

Financial Data
Year Social Capital Turnover Net Profit Employees
2015 67.133.804 lei 330.087.508 27.178.823 1.458
2014 67.133.804 lei 318.945.093 31.138.739 1.465
2013 67.133.804 lei 317.432.940 31.380.855 1.465
Fig. 5
 4. Accounting

The accounting department issues every financial document or report, keeps track of the
revenue and decides and declares all the obligations to the state Budget.
Antibiotice SA owns all the fixed assets registered in the company's accounting.
Here we have a table about the profit obtained during 2018 as follows:
Destination Amount
Profit to be distributed 32.456.007
-legal Reserves 1.844.318
-own sources of financing and other profit distributions. 16.694.031
According to the law.
-dividends of which: 13.917.658
-dividends received by AVAS 7.378.763
- dividends receiver by other individuals and 6.538.895
companies
Total result represented by dividends 13.917.658
Fig. 6
The evolution of the balance sheet between 2008-2010:

Fig. 7

5. Service
The service department repairs the equipment, makes sure it works properly after installing
and check the process of producing the medicines.
IV. Key Performance Indicator:

The revenues from sales, registered at the company level on 31.03.2020 are in value
of 73.63 million lei, 13% higher than the value registered at the end of the first quarter of
the previous year. This increase was determined by the advance of 48.7% of revenues from
sales on the Romanian market.
The asset on 31.03.2020 is 802.2 million lei, 1% higher in compared to the value recorded at the
beginning of 2020.
Making investments, according to the approved investment plans, determined the increase
the value of fixed assets by 3.8%, from 380 million lei to 394.53 million lei.

The situation of the 31.03.2019 31.03.2020 2020/2019

Global Result (lei)
1 2 3 4=3/2
Revenues from Sales 65.066.014 73.631.604 1.13
Other revenues from 8.952.087 6.716.382 0,75
research
Revenues related to 16.662.315 14.302.700 0,86
stocks
Revenues resulted from 1.035.011 891.777 0,86
company and capital
Spending with raw 33.120.317 35.483.832 1,07
materials and
consumables
Spending with the 23.718.951 23.225.551 0,98
employees
Depreciation 5.159.090 5.519.475 1,07
Other spending 24.549.531 25.861.137 1,05
Profit related to research 5.166.539 5.451.468 1,06
Financial Costs -1.032.744 -1.259.835 1,22
Profit before taxes 4.133.795 4.191.633 1,01
Spending with taxes 864.384 111.024 0,13
Profit 3.269.411 4.080.609 1,25

Fig. 8
V. Challenges - Recommendations and solutions:

Strategies and measures to increase employee motivation:

Attracting new employees, able to support the company's vision, the shift to new professions,
the reduced availability of labor market specialists have led antibiotic management to create a
unitary and system modern pay. This system aims to align the benefit package at the level
performance of each employee.
Training programs for future employees:
• ’Summer school Antibiotice SA’
• partnerships with academic environment
• objective management system
• different projects where people can share their ideas
• recognition(advertisement on social media etc.)

Inside challenges for the company:

• pharmaceutical development
• development of analytical methods, validation of analytical methods
• clinical testing
• implementation in the manufacture.

VI. Conclusion:

Doing this case study, we found out that the Antibiotice SA factory is one of the most important
pharmaceutical factories in Romania because it provides us many types of medicines, It activates
on 8 manufacturing flows on which there are produced: injectable powders, capsules, tablets,
creams, gels, active substances obtained by biosynthesis.. It is one of the few businesses that has
managed to avoid a privatization, that takes care of its employees by providing further education
and activities for them, and that is always improving regarding the marketing and other
departments.
It is a company in continuous development, that takes care of its customers and will continue to
provide new and affordable alternatives of healing for patients and health specialists.
VII. References:

• https://www.antibiotice.ro

• https://www.antibiotice.ro/en/ceos-message/

• https://www.antibiotice.ro/en/company/mission/

• https://www.antibiotice.ro/wp-content/uploads/2020/02/Raportare-Trim.-I-2020.pdf

• https://www.tradeville.eu/actiuni/actiuni-ATB/date-financiare