Summary
Stock: Krka, d. d. (WSE: KRK) common equity
Market cap: €2.80bn
Rating: Buy
Price: €89.80
Target: €126.59
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Setting the stage
Krka, d. d., founded in 1954, is a Slovenian generic pharmaceutical manufacturer. The company makes money by developing, producing, marketing, and selling prescription and non-prescription generic drugs in Europe, mainly Eastern Europe.
The company’s prescription drugs include medicines for treating cardiovascular diseases, the gastrointestinal tract, the central nervous system, pain relief, anti-infectives, blood, blood-forming organs, the urological system, diabetes, and oncology. These products make up 83% of sales. Its non-prescription drugs include medicines for oral cavities and the pharynx, cough and cold treatment, analgesics, nasal products, vitamins and minerals, cerebral and peripheral circulation, the digestive tract, and others. These products make up 9% of sales. The company also has animal health products, making up 5% of s…