“Medicinal cannabis-based products are one of the key segments where we see significant potential for further growth, both in the domestic and international markets,” says Kosta Koteski, Deputy Chief Executive Officer of Replek.
Ten years ago, when Replek launched its medicinal cannabis-based products programme, many viewed the company with scepticism. Today, this pharmaceutical company is the leader in the Macedonian market in this segment and has a presence in European markets with these products. In an interview, Kosta Koteski, Member of the Management Board, Deputy Chief Executive Officer and Director of Marketing and Sales at Replek, discusses how the idea came about, the level of investment involved, why this segment has such strong potential and what the company’s plans are for the future.
Replek celebrated a significant milestone last year – 80 years of existence – and this year marks another important milestone: 10 years since the start of production of medicinal cannabis-based products. How would you assess the development of this segment, and what opportunities does it open up for Replek, both in the domestic and foreign markets?
When we started producing medicinal cannabis-based products ten years ago, we encountered a degree of reservation and scepticism. However, our decision was based on thorough research and analysis, which showed us that this pharmaceutical segment had significant potential. Although it was a new field, we were confident that we should begin developing medicinal cannabis-based products.
This pioneering step began with a new investment that followed the latest trends in the production of such products. Alongside investing in new equipment for the production of medicinal cannabis-based products, we also worked intensively on our quality control systems. This was an entirely new production line, the first of its kind on the market, and it had to meet three key prerequisites: innovative technology, the highest verified quality, and a product that we could successfully bring to market.
This is how the product line came into being. But it was about much more than our company – we were working towards something much bigger. Through our example, we encouraged other companies to invest in and develop this segment, which has significant potential that has so far only been partially utilised. This means new investments and new jobs, demonstrating that Replek’s move also had an impact on economic development.
Looking back over the past ten years, we have not only created a success story and products of the highest quality, but these products are also exported to foreign markets, where quality controls are very stringent. We are also present in European Union markets through exports to Slovenia and Ireland.
Today, it is clear that this segment has significant potential in the European and global markets, and that the opportunities will belong to companies that can offer high-quality, safe and standardised products, backed by knowledge, continuous investment and a responsible approach to consumers. Replek has ten years of experience in this field and a strong foundation on which to continue developing its portfolio, investing in innovation and capitalising on the opportunities offered by this promising segment of the global market.
What are Replek’s plans for medicinal cannabis-based products going forward? How do you plan to strengthen the company’s position in the domestic market?
Replek will continue with its strategy of expanding into foreign markets, while at the same time strengthening our presence in the domestic market. As I mentioned, these products have very strong potential, and we are taking this into account when developing our strategy. We expect to enter another European Union market by the end of the summer.
Our goal is to build trust through the quality of our products, but also through education and support for users. It was precisely with this in mind that Replek opened the KA Information Centre for Medicinal Cannabis-Based Products, the first centre of its kind in the country. As pioneers in this field, we felt that, alongside developing high-quality products, we also had a responsibility to create a place where citizens can receive verified information and free expert advice on their proper use.
Our mission is to raise awareness of these products and overcome the stereotypes that still exist. The KA Information Centre enables us to support consumers on a daily basis and contribute to improving their access to information.
Replek is an export-oriented company, while the world is facing global geopolitical and economic changes that are affecting the pharmaceutical industry. How are these changes impacting the company’s operations and market position?
The pharmaceutical industry has always been exposed to dynamic changes, particularly in terms of regulation, which is constantly evolving and adapting to new needs and standards. That is why Replek continuously monitors these changes and adapts to new circumstances in a timely manner. Geopolitical developments and economic challenges undoubtedly affect access to certain markets, but at the same time they also create new opportunities for positioning.
Our advantage is that we already have extensive experience across different markets and are currently present in several regions around the world. This enables us to identify trends more quickly, adapt to changes more effectively and make strategic decisions for further growth.
Market diversification and continuous investment in quality, innovation and partnerships are the best response to the uncertainties of today’s business environment. Our figures confirm the effectiveness of this strategy. In the past year alone, we achieved 36 per cent growth in net profit, alongside a significant improvement in profitability and an increase in our net profit margin to 14.7 per cent.
You recently announced your entry into the UK market. How high and stringent are the criteria for placing pharmaceutical products on developed markets outside the European Union?
The UK market is one of the most significant and competitive pharmaceutical markets in the world, and the criteria for the registration and placing of pharmaceutical products on the market are among the most stringent. That is why we are particularly proud that Rekonazol shampoo was the first medicine with which Replek successfully entered the UK market. This achievement is a strong confirmation that Replek’s products meet the highest standards of quality, safety and manufacturing, and is the result of many years of investment, expertise and dedication by our teams.
Last year, Replek received its EU GMP certificate for the fifth time. The certificate represents a kind of “passport” for exports, confirming compliance with quality and good manufacturing practices. It is awarded following thorough inspections of manufacturing facilities and serves as evidence that the company meets the highest pharmaceutical standards.
Continuous investment also plays a significant role. In the jubilee year of 2025, we made investments worth €5.9 million, while our export strategy contributed to as much as 75 per cent of total sales revenue coming from foreign markets.
All these indicators send a clear message about Replek’s seriousness, stability and long-term commitment to quality.
Which product categories and markets do you see as having the greatest growth potential in the coming period, given Replek’s strategy of expanding its international presence?
Replek is currently present in 25 markets, and our medium-term goal is to increase the number of foreign markets from the current 25 to 40 by 2030. To achieve this goal, we have a clear internationalisation strategy and are continuously expanding our portfolio.
We are currently competitive in the markets of the European Union, the Adriatic region, the Eurasian Economic Union, the Middle East, Africa, Southeast Asia and the CIS countries, and our goal is to further strengthen our positions in existing markets while opening up new opportunities for growth.
When it comes to the product categories with the greatest potential, these vary from market to market. In this regard, North Africa, Australia, Canada and South Korea stand out as markets offering significant opportunities for portfolio growth, which we are carefully analysing as part of our development and export activities. What is important to emphasise is that, thanks to our broad pharmaceutical portfolio, Replek is well positioned to respond to the specific needs of individual markets.
From a market perspective, the segment of products aimed at prevention and supporting a healthy lifestyle is particularly promising. Consumers are increasingly looking for products of natural origin that offer added value for their everyday wellbeing, creating room for the development of new solutions and the expansion of existing portfolios. In this regard, medicinal cannabis-based products are one of the key segments where we already see significant potential for further growth, both in the domestic and international markets. This is also confirmed by our participation in international pharmaceutical trade fairs, where we are seeing growing demand for these products, particularly CBD oils, as well as for our medicinal cannabis-based cosmetics.
That is precisely why we believe this segment will remain one of the key drivers of Replek’s development and international growth in the years ahead. (N.V.)
The interview was published on nezavisen.mk.