When pharmacist Boris Andrijanič founded a small pharmaceutical laboratory in Novo Mesto, Slovenia in 1954, he could hardly have imagined that his modest nine-employee operation would evolve into one of Europe’s most successful generic pharmaceutical companies. At the time, Slovenia was part of Yugoslavia, and pharmaceutical manufacturing was dominated by state-controlled enterprises focused primarily on domestic markets.
Today, Krka, d.d., Novo mesto is an international generic pharmaceutical company with headquarters in Novo Mesto, Slovenia. In 2023, Krka Group’s total sales amounted to 1.806 billion euros. The net profit of the Krka Group totalled €313.7 million. This remarkable transformation from a local laboratory to a global pharmaceutical leader demonstrates how strategic vision, continuous innovation, and commitment to quality can create enduring competitive advantages in one of the world’s most demanding industries.
Seven Decades of Pharmaceutical Excellence
The Krka Pharmaceutical Laboratory was founded in 1954 on the initiative of Boris Andrijanič, who was running the Novo Mesto Town Pharmacy at the time. Initially, it employed only nine workers, but within two years it had already grown into a pharmaceutical factory. This rapid early growth established a pattern of expansion that would characterize Krka throughout its history.
The company’s development reflects broader historical changes in Central Europe while maintaining consistent focus on pharmaceutical innovation. Although the first medicines were registered on the domestic market, Krka started making inroads into foreign markets already in the 1960s. This early international orientation proved prescient, positioning Krka to capitalize on global opportunities as trade barriers diminished and regulatory frameworks harmonized.
Krka is one of the leading generic pharmaceutical companies with 70 years of experience. Today, the high quality of our products is recognised all over the world. The company’s longevity in an industry characterized by rapid technological change and intense regulatory scrutiny demonstrates exceptional organizational resilience and adaptability.
Building on Ancient Pharmaceutical Traditions
Krka’s success builds upon centuries of pharmaceutical heritage in the Novo Mesto region. The first pharmacies began to emerge behind monastery walls in this region as early as the 12th and 13th centuries. By the 15th century, a monastery pharmacy was established in Novo Mesto. This historical foundation provided both practical knowledge and cultural appreciation for pharmaceutical craftsmanship that continues to influence company operations.
The first regional pharmacy in Novo Mesto was founded in 1570 with support from regional authorities. It was managed by Peter Klaus, who worked as a pharmacist’s assistant. This tradition of combining technical expertise with community service remains central to Krka’s corporate culture and strategic approach.
The company’s deep roots in Slovenian pharmaceutical tradition have provided competitive advantages that purely commercial enterprises cannot replicate: institutional knowledge, community trust, and commitment to long-term value creation that extends beyond quarterly financial results.
Strategic Evolution Through Market Changes
Krka’s growth trajectory reflects strategic adaptation to changing market conditions and regulatory environments. During this period, it added licensed products to its product portfolio and obtained its first US Food and Drug Administration (FDA) registrations for the production of antibiotics by the late 1970s. These early FDA approvals established credibility in highly regulated markets and demonstrated quality standards necessary for global competition.
In the early 1980s, Krka shifted its focus to developing its own value-added generic products. It began expanding its international marketing network, significantly strengthening its position in European markets. This strategic pivot toward proprietary generic development differentiated Krka from competitors focused solely on manufacturing and distribution of existing formulations.
The company’s international expansion accelerated following political changes in Central Europe. As a response to social and political changes, we started targeting Western European markets. In the mid-1990s, more than 70% of our products were exported. This international focus insulated Krka from domestic market limitations while providing access to larger, more lucrative pharmaceutical markets.
Comprehensive Product Portfolio and Market Presence
Krka’s current operations encompass multiple therapeutic areas and product categories that serve diverse patient populations worldwide. Krka produces a wide range of prescription pharmaceuticals used in the treatment of cardiovascular diseases, alimentary tract diseases, central nervous system diseases, pain, diabetes and blood clots. This therapeutic breadth provides stability through diversified revenue streams while enabling cross-selling opportunities across medical specialties.
Prescription pharmaceuticals remain its main product group, with an 81.7% share of Krka Group’s total sales in 2023. They are followed in sales volume by non-prescription products (9.9%) and animal health products (5.8%). This product mix reflects strategic focus on higher-margin prescription pharmaceuticals while maintaining presence in growth markets for consumer health and veterinary applications.
The company also produces single-pill combinations containing two or more active ingredients, enabling patients to receive dual or triple therapy in a single dose. These combination products demonstrate Krka’s ability to develop sophisticated formulations that improve patient compliance while creating competitive differentiation through intellectual property and manufacturing expertise.
Global Reach with European Focus
Krka’s international presence spans multiple continents while maintaining strategic concentration in European markets where the company has established competitive advantages. Krka sells products to more than 70 countries. At the end of 2023, Krka Group had 12,753 employees. This global workforce enables localized market development while maintaining consistent quality standards across all operations.
Krka also has production and distribution centers in Russia, Poland, Croatia, and Germany. These manufacturing facilities provide supply chain advantages, regulatory compliance capabilities, and market access that purely export-based strategies cannot achieve. Local production also demonstrates long-term commitment to key markets while reducing transportation costs and delivery times.
Krka’s biggest markets are the Russian Federation, Poland and Germany. Region East Europe is Krka Group’s largest sales region, representing 33.0% of total sales. This geographic concentration in Central and Eastern Europe reflects both historical relationships and competitive positioning in markets where Krka’s products and pricing strategies align with healthcare system needs and patient requirements.
Innovation Through Vertical Integration
Krka’s competitive advantage stems from vertical integration that encompasses all phases of pharmaceutical development and manufacturing. We control all its production phases, from the development of the active substance to the manufacture of the finished product, to ensure quality throughout its life cycle. This integrated approach provides quality control, cost management, and intellectual property advantages that contract manufacturing arrangements cannot deliver.
We are committed to quality, innovation and development, and allocate 10% of revenue to research and development. This substantial R&D investment demonstrates commitment to innovation that extends beyond generic product development to include proprietary formulations and manufacturing processes that create sustainable competitive advantages.
We launched our first product development and quality control facility, marking our decisive shift towards development of in-house generic pharmaceuticals. This investment in internal capabilities enabled Krka to control product development timelines, costs, and specifications rather than depending on external partners or licensing arrangements.
Outstanding Financial Performance and Growth Strategy
Krka’s financial performance reflects successful execution of long-term strategic plans while maintaining strong profitability and dividend growth. In the first half of 2025, the Krka Group generated revenue of €1,048.5 million, up 6% year on year, yielding €246.7 million net profit, up 11% on the same period last year. This consistent growth demonstrates resilience of the business model and effectiveness of management execution.
Slovenian pharmaceutical leader Krka has marked a standout year in 2024, reporting a 13% rise in net profit to €353.4 million and achieving record revenues of €1.91 billion, up 6% from the previous year. These record results position Krka for continued expansion and market share growth across existing and new therapeutic areas.
We pursue a long-term strategy of stable dividend growth and allocate at least 50% of net profit of majority shareholders for dividends each year. From 2014 to 2024, the gross dividend per share increased on average by 13.6%. This dividend policy demonstrates management confidence in sustainable cash flow generation while providing attractive returns to shareholders who support long-term growth strategies.
Ambitious Growth Targets and Market Expansion
Krka’s strategic planning reflects ambitious targets that build upon current market positions while expanding into new therapeutic areas and geographic markets. To attain at least a 5% average annual sales growth in terms of volume/value and achieve above-average sales growth in relation to market dynamics. These growth targets exceed industry averages while maintaining focus on profitability and operational excellence.
We plan to strengthen our position as one of the five leading generic pharmaceutical companies in all our traditional markets of Slovenia, eastern, central and south-eastern Europe. This market leadership goal requires continued investment in manufacturing capacity, product development, and marketing capabilities that support premium market positions.
We intend to strengthen our position as one of the top ten generic pharmaceutical companies in all western European markets. This Western European expansion strategy addresses higher-value markets while leveraging existing European Union regulatory approvals and distribution capabilities.
Vision for Healthcare Impact
Krka’s mission extends beyond financial performance to encompass meaningful contributions to global healthcare accessibility and quality. Every day more than 12,500 employees work on the quality, innovation and development, production, marketing and sales of our pharmaceutical products, which are trusted by more than 100 million people in more than 70 countries worldwide. This patient impact demonstrates the broader social value created through successful generic pharmaceutical operations.
Our achievements have been built by generations of Krka employees through their courageous and visionary outlook. Our attitude to people, the environment and the natural heritage as well as our strategic business direction all contribute to a better quality of life. This holistic approach to value creation encompasses environmental stewardship and community development alongside business growth.
Our mission is to develop and manufacture advanced generic medicines, which are used to treat 100 million people in more than 70 countries around the world every day. This patient-focused mission statement reflects understanding that pharmaceutical success ultimately depends on improving health outcomes for individuals and communities worldwide.
A Foundation for Continued Excellence
Krka’s transformation from a small Slovenian laboratory to a global pharmaceutical leader demonstrates how strategic vision, operational excellence, and commitment to quality can create sustainable competitive advantages in demanding markets. The company’s success provides a model for how regional businesses can achieve global scale while maintaining authentic connections to their origins and values.
Our reliable supply and output exceeding 18 billion tablets and capsules make us a strong partner to patients and healthcare systems in the treatment of most common diseases. This manufacturing scale, combined with 70 years of pharmaceutical expertise, positions Krka to continue serving global healthcare needs while generating attractive returns for shareholders and meaningful employment for thousands of professionals.
At Krka, living a healthy life represents more than a corporate slogan, it embodies a comprehensive commitment to advancing global healthcare through accessible, high-quality generic medicines that improve treatment outcomes while reducing costs for patients, healthcare systems, and society. Through continued innovation, strategic expansion, and unwavering focus on quality, Krka demonstrates that pharmaceutical excellence and financial success can work together to create lasting value for all stakeholders.
Ready to learn more about pharmaceutical innovation? Visit Krka’s website to explore their comprehensive product portfolio and discover how 70 years of experience in generic medicine development continues to improve healthcare accessibility worldwide. Whether you’re a healthcare provider, investor, or simply interested in pharmaceutical innovation, Krka’s commitment to quality and continuous growth demonstrates the potential for European companies to lead in global markets.
Explore Krka’s development strategy and learn how this Slovenian pharmaceutical leader plans to strengthen its position among the world’s top generic medicine companies while maintaining its commitment to sustainable growth and community impact.
Born and raised amidst the hustle and bustle of the Big Apple, I’ve witnessed the city’s many exciting phases. When I’m not exploring the city or penning down my thoughts, you can find me sipping on a cup of coffee at my favorite local café, playing chess or planning my next trip. For the last twelve years, I’ve been living in South Williamsburg with my partner Berenike.