Yugoslavia - offer

"FARMALEK is a joint stock company. A Swiss company owns 52% of the stock, 38% is owned by Lek - Ljubljana and the remaining 10% are privately owned shares. FARMALEK is the representative and consignment holder for two of the leading companies in dentistry products - Vivadent and Ivoclar. It also imports medicines, medical supplies and cosmetics, its principal clients (85%) being state run institutions. As soon as the circumstance permit it, the company is to start its own production." - Farmalek general manager Dragan Buric says.

"The company was officially founded in 1991. as a joint stock company controlled by Lek -Ljubljana. By the end of that year fresh capital was invested in the company and the majority of stock was acquired by the Swiss. By 1994 the governments of Yugoslavia and Slovenia permitted the activity of the company, though it was principally barter oriented. Furthermore, the money from the sale of Slovenian medicinals in our country was paid into an account with the Postal Savings, which was used to pay the pensions to people that retired in Slovenia or Croatia and are presently living in FR Yugoslavia. From 1994 onward, all activities ceased."

How did the company manage to survive and how is business now?

"Farmalek must comply with the Yugoslav laws and regulations. Our business in FRY is controlled by Yugoslav inspectors, auditors and customs. However, all business contracts with foreign companies are in the competence of the Court in Geneva. Should I fail to fulfill some obligations - as general manager - my client can appeal to the relative institutions in Geneva and settle the outstanding debt by claiming some of the Farmalek capital, seize company property or even my personal property." - Mr. Buric explains. "This is exactly the kind of security that socially owned companies in Yugoslavia can not give to a foreign partner."

How are you coping with the rather unstable business environment in our country, bearing in mind that you do much business with foreign companies?

"Sure, I operate at a risk. As far as my partner is concerned, a German mark is always worth the same, and on my side of the slate it represents a variable amount in dinars. This is why I insist with foreign companies that they grant me credit in goods, this being favorable for them as well. Farmalek has its own Assembly, where - regardless of the capital share - I have three votes, one goes to the Swiss and one to Lek. I've asked and have been given more rights because of the risk and responsibilities I have to take on."

Do you have any plans to start some form of production and what is your view of the status the national pharmaceuticals sector has?

"Obviously, after a difficult period the national industry should be renewed and granted some protection. However it is now overprotected." - Mr. Buric remarks. "Farmalek also exists because we want to launch some production. The initial agreement with Lek was to start production here, but permission was denied and 35 million DEM have been invested in Macedonia."

Noting this, Mr. Buric stresses that the fact that Lek is a Slovenian company should not be viewed in a biased way. The important thing is that someone - a German maybe - is prepared to invest through Lek in Cacak, Belgrade or any other town in Serbia or Montenegro.

Mr. Dragan Buric has a degree in pharmaceutics. He had been given a college scholarship by Lek and then worked in the company representative office in Belgrade. When the offices in 24 Lomina St. passed to Farmalek, he stayed on so his entire business career has evolved there.