The Krka Group Strategy forms the basis for our development
Our development strategy is drawn-up for a five-year period and updated every two years to adapt it to the ever-changing business conditions.
Key strategic objectives until 2024
- To attain at least 5% average annual sales growth in terms of volume/value.
- To improve the care for the quality of products and automate business processes.
- To provide sufficient quantities of manufactured products through an efficient and optimised development-and-production chain in accordance with the required quality standards in a timely manner and in line with target sales growth and market needs.
- To focus on maximising the long-term profitability of the products sold from development and production to sales of finished products, including all other functions within the Krka Group.
- To ensure growth through long-term partnerships (including joint ventures) and acquisitions in addition to organic growth, when interesting target companies become available. To focus on European markets, central Asian markets, and the Chinese market. The primary goals are to secure new products and/or markets.
- To maintain the largest possible proportion of new products in total sales and the proportion of vertically integrated products in addition to the existing range of products, also referred to as ‘the golden standard’.
- To launch a selected product portfolio in selected key target markets as one of the first generic pharmaceutical companies.
- To strengthen the pharmaceutical and chemical sectors in key therapeutic areas of prescription pharmaceuticals and in other therapeutic areas; introduce innovative products (innovative combinations of two or three active ingredients, new strengths and pharmaceutical forms, and delivery systems); and enter the area of similar biological medicines and complex peptides.
- To allocate up to 10% of our annual revenue for R&D expenses.
- To strengthen the competitive advantage of our product portfolio.
- To improve the cost-effective use of all assets.
- To increase the degree of innovation across all business functions.
- To pursue a stable dividend policy and allocate at least 50% of net profit of major shareholders for dividends. The projected EBITDA margin is expected to average between 21% and 25%, and the projected ROE between 9% and 12%.
- To maintain independence.