The most important component of the economic environment that influences the drug producers is the pharmaceutical market and the economic situation, namely the economic crisis that has consequences on the decrease of the purchasing power, the increase of the inflation, the increase of the unemployment rate, the decrease of the living standard with implications on the deterioration of the state of health of the population.
All these in conjunction with the demographic indicators, as well as the well-thought-out strategies of the company in terms of prices, product portfolio and promotional strategies, could be opportunities for Biofarm corporation.
The crisis has a major impact on the health of Romanians taking more and more drugs. As a result some of the most profitable companies in these times are those in the industry.
This is reflected somewhat in their evolution on the scholarship. Biofarm is among the few companies traded on the Bucharest Stock Exchange, which registered a business value increase in the first quarter of this year, as evidenced by their financial results published by the BSE.
The reason for the increase is represented by the great need for treatment that exists in Romania and which in the proportion of 80-90% will be satisfied regardless of the measures the authorities will try.
Other causes that have led to market growth include: high treatment needs, increased susceptibility of the population to health risks.
The activity of pharmaceutical companies that, in addition to classical promotions, play an important role in identifying and awareness of the role of certain illnesses or treatments, both for the general public and for health professionals, doctors and pharmacists
Regarding foreign investments on the Romanian market, it can be said that the lack of a solid Romanian capital and the lack of sustainable economic growth have long removed the foreign investors on the Romanian merger and acquisition market.
At the same time, the lack of a strong Romanian capital to support foreign direct investment in the domestic economy was another factor that favored the realization of mergers.