Sopharma Set For Sustained Growth

BMI View: Sopharma's successful transition from a domestically-focused drugmaker to a substantial exporter of pharmaceuticals to Eastern and South Eastern Europe denotes its potential for continued revenue and profit growth, which is supported by strong demand for drugs in its targeted export markets. BMI views its vertical integration approach to rapidly securing market share in its export markets favourably and we note the compatibility of Sopharma produce - namely generic branded drugs - with the target markets. Based on BMI projections of moderate to strong growth in Sopharma's export markets, we believe the company's stock will considerably outperform the Bulgarian Sofix index in 2011, with increased production capacity, new products and new markets generating revenue growth and improved profitability.

To read the full article, please choose one of the following options: