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Same product, different name

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ACA Müller ADAG Pharma buys approximately 75% of products in europe, mostly in eastern europe. They are labelled for ACA Müller and packaged with the appropriate papers regarding use, ingredients and side effects for the intended area of sale. About 25% of the products are sold in europe to wholesalers and pharmacists. The range includes both prescription and over-the-counter medications, as well as other medical products, such as for personal care.

“Top prices are of utmost importance in our business,” says CEO Franz Kutschera. “What we sell has ingredients identical to the originals. The only difference is the packaging. We have a constant eye on the market to maintain growth in our assortment. Right now we have around 1,100 products for sale.” The company even has its own department for market and product development.

Founded in 2002, ACA Müller ADAG Pharma has a staff of 260 in Gottmadingen plus an additional eight at its location in Oberhausen. In the future the firm aims to focus on relabeling and other services at its branch office and to increase the processing of over-the-counter medications.

About 53% of the company’s shares are owned by the Müller Family, and 21% is owned by the swiss firm Anaconda. Another 20% is in the hands of a group of investors, and the remaining shares are widely spread. With a turnover of 120 million EUR last year, ACA Müller ADAG Pharma is by far not the biggest player in the market, but it is growing.

“In recent years, we have obtained a market share of 3.9%,” Mr. Kutschera points out. “That is not very much, but we have more than doubled in size from 1.9%.” nonetheless, there are barriers to this growth. “Major risks can be found in the legislation on reimports spanning the EU,” Mr. Kutschera describes the situation. “Overall the market will take steps forward, for example, through political decisions on the pricing of reimports. However, the discount contracts between the original manufacturers and hospitals are a certain risk for the industry.”

The European Union itself is valuable to the firm. The economic union allows for easier transport across national borders and lower costs thanks to a lack of customs duties. In terms of trade fairs, ACA Müller ADAG Pharma recently attended the Expo Pharma to gain contact to suppliers worldwide.

About 25% of its turnover is based on products going abroad, and that number is also set to increase. “In the future we want to strengthen the company and be able to offer our employees secure jobs,” Mr. Kutschera says. “We would like to expand our location in Gottmadingen and invest in our own property.”

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