Vitalux opens 14 new pharmacies in Kyiv

February 05, 2010

Vitalux, one of the leading Ukrainian Western-style pharmacy chains, is expanding its network by opening 14 new pharmacies in Kyiv. Following this expansion, Vitalux will run a total of 44 pharmacies, which will allow strengthening its market position in Kyiv with an estimated market share of approx. 10 % in value terms.

The newly opened stores are mainly located on the left bank of Kyiv, in the Kharkivsky and Darnytsky districts. Prior to Vitalux the pharmacies operated under different brand names. By the end of February 2010 all stores will be fully integrated into Vitalux style pharmacies.

Vitalux offers more than 15.000 items to its customers, ranging from pharmaceutical goods to beauty and baby care products. Customers also have the possibility of ordering all products online (apteka.vitalux.ua) or by phone (+38-044-593-22-22). Additionally, 8 pharmacies are opened around the clock to satisfy any clients requirements. At present, more than 500.000 people are regular clients of Vitalux stores.

Further expansion as well as the development of chosen business model is the main strategy of the company. Vitalux positions itself as a Western-style pharmacy chain with a “more than a pharmacy” slogan. The Company strives to become the leader in the Ukrainian pharmacy retail market.

Commenting on the fund's goal and its role in Vitalux' future development, Mr. Leslie Hawrylyshyn, Co-Managing Partner of Euroventures Ukraine, said “Vitalux has all the components, needed to become the outright leader of the Ukrainian pharmaceutical market, such as experienced and enthusiastic management, a well-tuned business model, a strong visible brand and good relationships with different suppliers. We believe that Vitalux will become an attractive acquisition target for local or international pharmaceutical retailers within the next couple of years”.

Euroventures Ukraine Fund II and the Ukraine Opportunity Trust PLC (UKRO) own 56.3% of Vitalux. Average annual growth of net sales during 2006-2009 was 40% vs. 14% of the overall market. The number of outlets almost tripled: from 16 in the beginning of 2007 to 44 today.

Euroventures Ukraine is a private equity fund manager which manages 2 funds (EVU I and EVU II), and is also acting as an exclusive investment adviser to the Ukraine Opportunity Trust PLC, an investment trust traded on the London Stock Exchange.

Operating since 1998, EVU I has invested EUR 22.6 million in ten companies. As of February, 2010, the fund has fully exited from seven and partially exited from one investment. EVU II together with the Ukraine Opportunity Trust PLC (both operating since 2005) have invested USD 63.1 million in seven companies, all of which remain active.