BULGARIA Pharmaceuticals firm corners the market
A PRIME EXAMPLE OF THE ENTERPRISING APPROACH OF THE NEW BULGARIA, PHARMACEUTICAL DISTRIBUTOR COMMERCIAL LEAGUE HAS CARVED OUT A REPUTATION FOR QUALITY OF SERVICE AND GENERIC PRODUCTION

TIHOMIR D. KAMENOV Chairman of Commercial League

When the wall came down in Berlin in 1989 and the domino effect rippled throughout southeastern Europe all the way to Bulgaria, Tihomir Kamenov decided to go home. A 30-year-old graduate of international law in Leiden, Mr. Kamenov returned to his native Bulgaria to found the pharmaceutical distributing company, Commercial League.

The year 2000 marked Commercial League’s 10th consecutive year of growth. Revenues were 62 million euros ($54 million) in the company’s core businesses alone and net income rose by 272% to 6.5 million euros ($5.67 million) from 2.5 million euros ($2.18 million) in 1999. Since its founding in 1991, Commercial League has emerged as one of the blue chips of the new Bulgarian economy and one of the largest pharmaceutical distributors in Eastern Europe. Since 1996, sales have risen some 900% and market share has increased by 700%. The company currently supplies pharmaceutical products to more than 2,900 pharmacies and has a 57% share of the local Bulgarian pharmaceutical market. Chairman Mr. Kamenov describes the company’s position in Bulgaria as “dominant” and goes on to say that Commercial League “supports Bulgarian society by raising healthcare production and commercial standards and provides one of the best bridges towards Bulgaria’s early accession to the European Union.” The company’s commitment to current good manufacturing and good distribution practices is widely recognized as an industry standard and further promotes Bulgaria’s case before the EU.

THE CARING FACE OF BULGARIA Commercial League is the largest supplier of medicine for the national health service.

A bright example of Bulgaria’s emergent market economy, Commercial League is a case study of the new breed of Bulgarian companies. “Commercial League was created by 100% Bulgarian nationals, born and educated in Bulgaria, “ Mr. Kamenov states. “The company uses all the modern techniques of conducting business. We began purely with product marketing knowledge and then moved on to structural development, legal framework, financial risk management and internal credit organization, recruitment rules and credit control systems. Finally, we now have modern IT in place. According to most of the multinationals we do business with, they feel secure with a company that services over 45,000 lines, and has a structure of 410 cars, 700 people, 28 full-fledged branches, and a developed responsibility chain. This provides them with the modern marketing capacity they like to have.”
Since its formation, Commercial League has established its own regional branch structure and its own transport units. With around 300 transport units in operation, the company can deliver to any point in Bulgaria within two hours of order confirmation, 24-hours-a-day, 7-days-a-week, 365-days-a-year, and services over 4,000 orders daily. Bulgaria’s recently introduced healthcare reform has helped boost demand and Commercial League is the largest supplier for the national health insurance system. Correspondingly, the company launched its Care For You pharmacy benefit program, a first for Bulgaria, involving the gradual accumulation of patient data and the building of data processing capacity.

Increased generic production and further expansion throughout the Balkan region are on the table. In December 2000, the company inaugurated Tchaickapharma Inc., its GMP-certified facility for solid-dosage packaging and vials labeling. Mr. Kamenov adds, “going into the full-scale modern production of generics in Bulgaria and supplying the rest of the Balkans is what will contribute to tomorrow’s accession to the EU. Since modern development of original medicines is not possible in Bulgaria, the production of quality generic drugs is the only proud way to enter Europe with flying colors.”