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Lek (today a Sandoz company, part of Novartis' generics business) operates as a global development centre for products and technologies. It is also a global manufacturing centre for active pharmaceutical ingredients and medicines; and a competence centre for the development of vertically integrated products. The Ljubljana-based company is a Sandoz competence centre in the development and manufacture of biopharmaceutical products, a supply centre for the markets of central, eastern and southeastern Europe, the Commonwealth of Independent States as well as Slovenia and also acts as a sales service centre for Sandoz' global markets. Lek employs about 2,850 people, who, in 2005, helped the company achieve total sales of USD 656.5 m, up 0.4% from the previous year. The net profit on sales was 15%, which was down slightly on 2004, when it was 18.6%. Lek accounted for 14% of Sandoz' global sales revenues. Regionally, Slovenian sales accounted for 10.8%, the central and eastern European markets for 53.1% and western Europe, the USA and other overseas countries accounted for the remaining 36.1%. The USA remained Lek's leading market in 2005. The highest growth rate was recorded in the Russian Federation, which grew 40.8%. Lek's first quarter results for 2006 were also very promising. It recorded sales of EUR 14.7 m, which is 5.5% higher than the same period last year, and accounted for 12.4% of Sandoz' global sales. Krka is maintaining its advantage in its more traditional markets, the countries of eastern, central and southeastern Europe, while it is steadily expanding into the markets of the European Union. One fifth of their production is sold in Slovenia, while the remainder is exported, thus ranking Krka among the largest Slovenian exporters. The company employs almost 1,000 experts from various fields, although primarily medical practitioners and pharmacists, in its forty offices abroad. Last year, the Krka Group posted a net profit of EUR 9.7 m (up 49%) on the back of sales totalling EUR 553.3 m, which in itself was a rise of 17% compared to 2004. The highest sales by region last year were recorded in central Europe (EUR 13.9 m), which represented 25% of the group's overall sales. Sales growth in the region was 35%. Compared to 2004 figures, the largest increase in sales was recorded in the eastern European region, where the group achieved growth of 48%, with sales totalling EUR 13.66 m; meaning the region produced 25% of the group's overall sales. Slovenia remains the largest single market for the Krka Group, with sales of products and services worth EUR 10 m in 2005 (including sales by the group's health resort subsidiary, Krka Zdravilisca). Eighteen per cent of the Krka Group's overall sales are generated in the Slovenian market. The southeastern European markets were also important markets for Krka and sales revenues were up 11% and accounted for 17% of the group's overall sales, while the western European and overseas markets contributed 15% of the group's sales. The Krka Group continued to perform well during the first quarter of 2006 and was the Ljubljana Stock Exchange's most successful company in that period. They sold services worth EUR 18 m, up 32% on the same period last year. During the first quarter, 86% of total sales were exports and the group generated a net profit of EUR 2.9 m, which is 50% more than last year's figure. If the first quarter is any guide, then Krka will easily fulfil its plan to grow sales by 13% this year.