Founded thirty years ago, the pharmaceutical company PSP now holds 35% of the local market share, employs 5,000 people and is one of the most profitable companies in Georgia. Vazha Okriashvili summarizes the achievements of PSP Group.
Many Georgian companies are celebrating their 15th, 20th or 30th anniversaries this year. Each one has its own story, but they all have things in common: surviving a volatile period, turning challenges into opportunities and being models of success.
Today we look at PSP – a company that decided thirty years ago to tackle the shortage of medicine on the market by importing high quality european medicines and making them accessible to people across the country.
The CEO of PSP, Vazha Okriashvili, recalls that the company went through every possible stage of development, faced every challenge typical for a new business in Georgia, and grew by learning. He still faithfully follows the path that began thirty years ago. During this time, PSP played a vital role in developing the Georgian pharmaceutical sector – first as a distributor and then as a retailer.
Forbes’ short business interviews continue with our conversation with Vazha Okriashvili.
Can healthcare be a business?
PSP ranks fifth on the list of the largest Georgian companies by revenue. Healthcare is indeed a business, a business that demands high standards and high responsibility. Its development determines the direction in which the country is moving.
What would be the crucial figures if you were to tell the company’s story in numbers?
Over the last thirty years, we have had numerous achievements that can be quantified. They show where we are today: A company that employs 5,000 people, holds a 35% market share and maintains a leading position among the largest private Georgian businesses.
What stages of development has the PSP gone through?
The key dates are as follows:
1994 – 1996: PSP becomes Georgia’s first official distributor of European medicines.
1998: The number of European manufacturers represented by PSP in Georgia exceeds 100.
2000: Our group launches the pharmaceutical enterprise GMP, which produces the first Georgian medicines that meet international standards. Since 2007, GMP products have been exported to around a dozen countries worldwide, where they have been recognized as good-quality and effective.
2002: PSP significantly expands its retail network to ensure access to quality medicine for every citizen in every corner of the country.
2005: PSP becomes the leading production, distribution, and retail company in the Georgian pharmaceutical market.
2007: “My Family Pharmacy” becomes a chain of more than 100 stores offering a more comprehensive range of products in the pharmaceutical, personal care and family care categories.
2008: PSP attains the ISO 9001:2000 certificate, becoming the first Georgian pharmacy chain to hold a quality management certificate. Since then, we have successfully undergone numerous audits.
2016 – 2017: The pharmacy chain undergoes a complete rebranding to optimize the shopping experience and environment for customers.
2017: The company attains international recognition at the Stevie Awards – the world’s most important and prestigious business awards, where more than 200 company executives choose the winners. In 2017, the jury panel selected the winners in various categories from 3,900 companies from more than sixty countries. To this day, PSP is the only Georgian company to have won a prize at the Stevie Awards.
What has been your most valuable achievement during all these years?
When we founded PSP, we aimed to become the best company in this field in Georgia. And this is what we are today. We are a strong and reliable partner to hundreds of international firms on the Georgian market, and a company that best recognizes and meets the needs of the modern consumer, creates the best environment for healthcare and increases access to medicine across the country through geographic coverage and delivery of high-quality medicines.
What kind of brand is PSP?
Our attitude towards our partners and customers is as follows: To always care about mutual well-being, to keep our word and promises, and to constantly offer new products and services on the market. This approach determines the attitude of our customers and partners towards our brand. PSP is a strong brand focused on business transparency, continuous development and innovation.
How easy is it to manage PSP today? What has changed in your approach towards management over the years?
Our desire to create new things and be customer-centric has remained the same. Our aspiration to constantly engage in creativity instead of simply running a business became the harbinger of the success that we have achieved so far. We have retained this approach to this day. The only thing that has changed is the numbers. There are 5,000 of us today.
What are the main areas of corporate responsibility for your business?
Corporate responsibility plays a vital role in our business. The most important thing for us is people’s health and, therefore, the quality of our products and services, which we ensure through continuous personnel development and educational processes. In addition, strict compliance with all product sale rules and regulations constitutes our daily routine.
What does the slogan “My Family Pharmacy” mean?
We all care about our health and that of our family members. PSP makes it easier for us to look after our health by being wherever we need it to be and correctly identifying and catering to our needs. Thus, PSP is “My Family Pharmacy.”
Who are the people that the company is built on?
For me, PSP is the pharmacist who facilitates healthcare for hundreds of people daily and the team that grows professionally and in numbers each year.
You have addressed the challenge of making medicine accessible across the country. What challenges remain?
Increasing access to medicine was not just a challenge – it was and still is our mission. The current challenges include transforming and reforming the pharmacy network to develop multi-profile categories, ensuring the constant satisfaction of our customers through advanced recognition of their purchasing habits, and creating new retail trends.
Is competition a good thing?
The healthcare sector is a multifaceted industry. Like in any other business, challenges are created by competition. However, this is a positive challenge, forcing you to focus on development and never allowing you to relax.
The distribution of medicine is a globally regulated industry. Thus, we operate in a field where reforms are constantly carried out. Reforms often require a complete overhaul of domestic infrastructure. Operating this way for thirty years has become a daily routine for us. Although we often have to reorganize our operational processes, we respond immediately to any emerging reality and always maintain our primary focus, which is to create the most efficient environment for the supply of medicine to the country.
For me, PSP is the pharmacist who facilitates healthcare for hundreds of people daily and the team that grows professionally and in numbers each year.
Does this approach pay off?
Our long-term vision was and remains the cornerstone of PSP’s success.
What does your sector currently need most for further development?
Facilitating local production of quality medicine would be an important step that would help the pharmaceutical industry achieve its main goals and significantly strengthen the country’s economy at the same time
Is it the right step to open up markets – for example, towards Turkey – and thereby make medicines more affordable?
This project helped enhance consumer choice and access to medicine. So, naturally, it is the right step.
Is it right to say that PSP is betting on European quality?
The PSP pharmacy chain, which serves more than two million customers per month, was founded on European standards. The company has been supplying medicine to the Georgian market for thirty years. The public trust that is now one of our core values has been obtained by promoting European treatments. Our choices reflect the preferences of our customers. European standards are the choice of Georgian consumers.
How did the pandemic affect PSP?
The pandemic showed us once again that pharmacists are professionals with a great sense of responsibility who put their health at risk to care for customers’ well-being. COVID-19 was a big challenge, and we had to find a worthy response. First and foremost, we needed to take care of the health of our team members. Every one of our employees continued to operate, albeit in emergency mode.
What about the war in Ukraine? How has it affected your business?
We are a business that relies on imports. In turn, our foreign partners largely depend on the geopolitical processes currently affected by the war. Consequently, we have had to deal with additional challenges in the form of a deficit of some products and having to review the prices of specific components.
Where do you see the company in the future with regard to development? Can you share any specific plans or news with us right now?
In 2023-2025, we plan to develop our business by introducing new services and categories, expanding our geographic coverage, and presenting the retail chain in a new format.
In the 1990s, PSP aimed to give the population of Georgia immediate access to all the new medicines produced around the world and integrated into medical practice. We have been consistently implementing this goal. We will continue to work on enabling easy access to all modern medical and pharmaceutical innovations for the population of Georgia in the future.
What is your main message today?
Never give up! Growth is the result of consistently moving forward.
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