ELRAN AND NEWPHARM TO ESTABLISH NEW ROMANIA PHARMACY NETWORK

Israeli pharmacy operator NewPharm and industrial group Elran Holdings are to collaborate on a new stores network in Romania. The two companies will provide startup finance worth some EUR4mn (US$5.26mn) for the new venture, with NewPharm to provide management services in exchange for a monthly fee. NewPharm operates a chain of pharmacies with some 50 outlets in Israel.

Romania is currently one of Europe's least developed markets, with per capita spending at just US$18 in 2003. However, as local patent laws are opaque and government relations with the multinational sector remain problematic, opportunities should remain skewed toward the basic medicines segment and retail activity.