It all started out of a small pharmacy

Having set out in 1944 as a pharmacy, today the MSJ Group is counting 77 years of successful business activity in the health sector. It’s been ran by four brothers, with six 3rd generation family members now contributing to this success. It cooperates with well known foreign businesses through its Cyprus and Greece companies.

The Cyprus companies (M.S.Jacovides, Genesis Pharma Cyprus, Lifepharma, Vetagrica and Agrolan) providing pharmaceutical and biotechnology products, personal care and wider consumption products, skin and dental care products, baby and children’s food and nutritional products as well as laboratory and medical equipment and veterinary and plant protection products.

The companies in Greece (M.S.Jacovides Hellas and Genesis Pharma Hellas) provide pharmaceutical and biotechnology products, medical equipment and medical technology products.

The founder

It was all started by Michalakis (Michel).S Jacovides, who was born on Christmas Day 1916, during British colonial times. He was one of the first students of ‘ELENEION’ primary school and in 1934 graduated with high grades from the Pancyprion Gymnasium.

He later worked as a chemist assistant at one of the first pharmacies in Nicosia, while studying for his pharmacist degree by correspondence at a University of London branch. In 1934 he started working at a pharmacy for the experience but also income wise, so he could open his own pharmacy down the line, as his vision was.

MSJ Group’s successful course begun in 1944, when it opened its first retail pharmacy, with the MSJ logo representing the founder’s initials. ‘Michel Pharmacy’ was then situated near the central bus station in the busiest area of Nicosia, now in the occupied territories, Vici street 10-15.

Dimitra in his life

Dimitra was always by his side, a shoulder of support during his first step, working with him at the pharmacy. They had four children, Sotos, Savvas, Alexandros and Aristoklis (Aris).

The pharmacy quickly became popular, as people from surrounding areas coming to visit their doctors, bought their medication from there, on the way back. Michalakis was also one of the first to install a landline in Cyprus during the 1940s, with the number 116, still an MSJ Group number to this day.

Back then, the medicines list was shorter and quite specific, mainly including cough syrups, a few kinds of pills and powers, made in small quantities in pharmacies, by the chemists themselves. They had their own medicines laboratory, small perhaps, but fully equipped, including scales and spatula with which they mixed the various chemicals and ingredients, based on the doctor’s prescriptions. Imports of ready-made packaged medicines were quite limited in Cyprus at the time.

Known for his perception, Michalakis foresaw that medicines would be packaged in the future, so he started looking into pharmaceutical companies abroad in order to set off an import business, which was quite innovative for the time. So in 1949 he took the big step and secured a major cooperation deal, becoming the exclusive distributor in Cyprus of leading American pharmaceutical company Merck & Co (MSD), becoming one of the first importers and distributors of ready-made pharmaceutical products in the Cyprus market
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A few years later, in 1956 and during a major outbreak of polio, he took on the initiative of importing the polio vaccine from Belgium, which offered quite a competitive prince in comparison with the available alternative. Later on, during the 1960s, he expanded his business with an additional two pharmacies, one in Ayios Dhometios and the other on Makarios Avenue, in Nicosia. Michalakis’ wife Dimitra made a significant contribution, taking on an active role in the Ayios Dometios pharmacy.

By progressing, he gradually begun securing major cooperation deals with innovative companies to import and distribute pharmaceutical patent medicines, which set the foundations for the rapid growth of the MSJ Group in all health sectors.

Michalakis worked hard throughout his life, till the day he passed, on June 21st, 2015.

Passing on the baton

The children of Michalakis, his four sons, studied abroad, taking on different fields in Schools and Universities across England and France.

Sotos, Savvas, Alexandros and Aris, gradually begun returning to Cyprus in the early 1970s, joining the company and exploring commercial opportunities for the business in the pharmaceutical and health sectors. They worked as a team, setting targets, firstly for the maintenance and upgrading of the pharmacies and then developing the commercial businesses.

The first to return was Sotos, who worked directly on the market for three years, sharing his time between the office and seeing potential clients, including doctors and pharmacies, in order to acquire a better understanding of the Cyprus market and its dynamics and forge a strong network, that is of major significance to the country.

The 1974 Turkish invasion was a major blow for the family business, which lost half of its merchandise of major value from its Famagusta warehouse as well as the city’s port. The Nicosia airport closed down, as it was designated as buffer zone, so the company could not import medication, as there were no other airports on the island at the time. Therefore there were shortages in pharmaceutical products, with no supplies for weeks. A solution had to be found for patients. So medicines were transported by air to Athens and then shipped to Limassol. That continued till February 1975 when the Larnaca airport opened.

By the 1980s, all the brothers had returned from their studied and based on their common principles and values and the solid foundations build by their father, the four brothers begun implementing their vision, focusing on wholesale trade, merchandising, scientific support and distribution to the local market. To that end, they decided to close down their fathers’ pharmacy chain and through polymorphic methods and skills, coupled with their knowledge, experiences and hard work, managed to achieve a major growth in business, by recognizing opportunities for further development in additional fields of health care, in cooperation with distinguished personnel members.

In the early 80s they took the ambitious and strategic decision of expanding beyond Cyprus and through their conscientiousness and perception, diversified into the medical technology field and later the pharmaceutical field in Greece. Aris moved to Athens in 1982. The Jacovides brothers still work together, supporting each other.
All of them are members of the MSJ Group Executive Board, with each one having their own specialisation in various Group companies.
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Awards

The Group’s companies have secured awards both by associates as well as independent organisations for their top quality business activity and the their major financial and social contribution in Cyprus and Greece.

In 2009, MSJ Group was honored with the ‘Business Award Broad’ by the Cyprus Chamber of Commerce and Industry for its contribution in the progress of the Cyprus economy through its business activities abroad. In 2017, MSJ was awarded by the Cyprus-Greece Business Association in its successful business activity and contribution in developing business relations between Greece and Cyprus.

Professionalism, honesty, hard work

The MSJ Group is rooted in a small pharmacy opened in Nicosia by Michalakis (Michel) Jacovides in 1944. Today it has evolved into a major health Group that has expanded its activities abroad. Sotos Jacovides, the Group’s CEO talked to us about past, present and future.

What’s it like heading out a Group with such a great history and prestigious name?

It is a source of great responsibility to the Group and society, particularly in such a sensitive sector as health, as well as a challenge to succeed.

It’s not just me though. I work closely with the brothers and take the major strategic decisions together. We also have distinguished and experienced managerial staff, with their own contribution to the Group’s growth.

What does the history carry through to the present time and the future?

With professionalism, honesty and hard work, we also look ahead with optimism, carrying the culture of the Group to the next generation and our personnel does the same.

What is the Group’s DNA, how did it change you?

Our DNA are the principles that our father and founder of the Group gave us, along with the ideal mutual support of our four brothers.
A major achievement is also our flawless cooperation with the experienced managerial staff and all personnel and recently the gradual integration and contribution of members of the family’s 3rd generation, therefore securing the prospects for an even successful course and healthy development of the MSJ Group activities, looking to the future.

We want our group to be characterised by a positive labour environment, with good people and capable members. We are always looking to find the best, people with honesty and integrity that are conscientious and professional, within the framework of the Group’s culture.

Landmarks

What do you consider the most important moment in this decades long course?

There were certainly a lot of moments. One example is our decision and commitment as brothers, to work collectively for decades for the growth of our activities. Of equal weight was the strategic decision of 1980 to expand to Greece, which today forms the most important part of our business.

Our first company in Greece, M.S.Jacovides Hellas, was established in 1982 in Athens following the approval of our application to the Central Bank of Cyprus. Our company, with the four brothers as shareholders, was one of the first Cypriot owned companies in Greece.
The Greek market was 15-20 times larger than that of Cyprus, so we really focused on our work there.
While in Cyprus we followed the strategy of horizontal development in various health sectors, we implemented specialisation in Greece and initially focusing on the blood bank sector with blood sacs and innovative materials for people with thalassaemia. We then continued with blood filters built in the blood sacs, which was innovative for its time and our company begun to develop rapidly
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A few years later, based on the philosophy of specialisation, we decided collectively to expand in the new sector of biotechnological pharmaceutical products in Greece. We had discovered this prospect since the early 1980s and monitored its progress, launching a number of sound-out contacts with the first companies in the field. The firs biotechnological medication begun in the US and initially circulated through major multinationals to various European countries. In smaller countries such as Greece and Cyprus, they became active through local associates. In cooperation then with Costas Evripidis, we established a new company, Genesis Pharma, specialising in biotechnology medication for illnesses such as multiple sclerosis, cancer and multiple myeloma.

Which do you consider the most important decisions in the recent past or even today?

Our geographical and business expansion in the 1980s, with the establishment of our company M.S.Jacovides in Greece in 1982 and the establishment of Genesis Pharma in 1987, while in Cyprus I would say the acquisitions of Lifepharma and Health & Diet Food Center (H&D) in 2005 and 2017 respectively, Pharmnet’s merger with Marathon Distributors in 2009, the agreement with Cosmos Trading (now Laiko Cosmos Trading) in 2010 and more recently the launch of our e-shop, Evzeen.com.

The crises in Cyprus and Greece

What story or incident has stayed with you during your time in the Group?

There’s quite a few cases. For example, the 1974 Turkish invasion and the major shortages in medication that followed. Then there was the financial crisis in Greece during the 2nd decade of the 21st century, the 2013 in Cyprus and more recently the human health crisis caused by the covid pandemic.

More specifically in 2012, the health sector companies in Greece suffered a major blow when delays in payments of public hospitals to the companies went over three and a half years, as the state had decided in the previous year to pay these obligations with Greek public three year bonds. Later on, these bonds became part of the well known PSI (the Greek state bonds haircut), and they were devalued by 80%. This caused significant financial damage.

In spite of that, we never stopped believing that the company could be saved and responding to the crisis, we moved ahead with a major strategic restructuring through an ambitious business plan. Combined with systematic and painstaking efforts that lasted around five years, we returned to profit and restored a stable development course over the past few years.

We then came face to face with the 2013 haircut in Cyprus. Once again, we acted quickly, evaluate the repercussions, setting strategic goals and taking fast, painful decisions for immediate implementation and through effective managements. We managed to secure the viability of all our companies without redundancies and reassessed all the activities of every company and every sector separately.

Father’s advice

What did you father tell you as to how you must behave or what to decide?

The secret of our success is the fundamental principles and values that our parents handed down. Like our father used to say: ‘In order to succeed, you have to work hard, professionally and honestly in the direction of common interests and goals.

Tough to predict the future

What is the Group’s business plan?

In modern times, it is very hard to predict what will happen even in the next year. Our business plan, on which strategy is based, define specific quality and quantity targets and it’s an on-going process of improvement in itself. For example, back in the 1970s, we set out ten year business development plans. Then we went to five years, three years and then a 12 month plan, post-2010.
The pace has become much faster and its imperative to daily monitor developments and implementation results in order to move forward with the necessary changes and improvements, Therefore our development plans are adjusted accordingly, at a more regular basis. The business plans might not be static, but the core strategic direction remains the same.

Post-pandemic

How do you see things post-pandemic?

The business environment is constantly changing and the need to adapt to conditions is necessary for the survival of business. The pandemic has affected and radically altered every sector of the economy. The situation was unprecedented and unpredictable, both at global and local level, including the government, the business but also to each and every one of us.

Managing this crisis period wasn’t easy. But since the onset of the pandemic, our Group is taking important decisions and protection measures in order to minimise the risk of the virus spreading. During all this time, the safety and health of our people remains at the forefront. At the same time, we must also secure the operational capacity of our companies.

I am optimistic that the end of pandemic is near and with the contribution of the European Union and government measures, the economy will recover and the economic and social repercussions of the pandemic will be limited.

The future

What about the Group’s future?

Health is a sector that is constantly changing and development with prospects for new synergies. Major changes and challenges are also opportunities. The only way to face the modern business environment, but also survive, is timely planning, well thought out strategy and flexibility. With one of the most significant axis being the contribution of all our personnel, we focus our actions on organic growth but also new agreements, strategies, acquisitions and alliances in traditional but also new fields in the health sector.

At MSJ Group we promise to embrace and strengthen every stage and aspect of life, promoting health and prosperity in society through its well-built cooperation with world known producers and the successful range of high quality and standards products.

Social responsibility

How is your social responsibility obligation translated in actions and activities?

As a group active in the sensitive health sector we always aim to promote health and prosperity in society. Corporate responsibility is at the core of our business culture and our daily operations, while also connected as a basic axis of our business strategy.

The MSJ Group takes part in environment protection action, through a series of activities such as recycling of paper, plastic and glass and replacing the lit areas with LED lights. One of our companies is a founding member of Green Dot Cyprus. In the framework of social responsibility and contribution, we also support the Karaiskakeion foundation, provide scholarships to medical students, sponsor sports and athletes, donating products and support local health foundations, as well as medical and pharmaceutical conferences and associations for the protection and care of animals.

The new generation

You said the new generation is now part of the group…

With the contribution of the third generation in the Group’s activities, we follow the same strategy to secure the continuation of our successful and stable course, with the smooth transition of management from the 2nd to the 3rd generation, in close cooperation with our experienced executives.

An example of the 3rd generation cooperation was two years ago, when we launched the new, unified corporate identity of the MSJ Group on the occasion of our 75th anniversary. Our new logo combines our successful history with the future, while its hexagonal shape symbolizes the active and multidimensional participation of all officials and management towards strengthening the Group. Our new enhanced corporate identity, culture and dynamic, emphasise our new philosophy, with Life, the most precious gift, at its very core.

The new generation will bring on board something different. But there’s a big difference. When we started out, we went through all the stages of the business until we brought it to this point. We are passing on our children a health, profitable business with great prospects. Our goal is for them to understand the solid foundations we’ve created, work hard and with persistence, love what they do and actually forge the future. It is important that they put their soul into their work. We hope to successfully pass on our family values and experience, so the 3rd generation will dynamically move forward to the future, to new, even greater successes.

The timeless vision, values and principles

The Michalakis Jacovides motto, passed on to his children and now followed by the 3rd generation provides a timeless guideline:
‘In order to succeed, you need to work hard, have persistence, show dedication, practice mutual support and work well with all the directors and personnel, towards common interests and goals’.
That’s what he used to say. These fundamental values and principles go hand in hand with the strategy and growth of the MSJ Group.

In today’s rapidly developing sector of health care, adapting to new market conditions, with timely, strategic planning and flexibility, is of the utmost significance.

Michalakis’ children and grandchildren now actively take part in the MSJ Group activities, sharing a common vision: providing yet a further impetus in charting an even more successful course and the health growth of MSJ Group, with the most valuable asset always at the core of their activities: Life.

On the ground floor of the MSJ Group Central Offices, one can see the traditional pharmacy of the time, ‘Michel Pharmacy’, along with the pharmacy counter on which he worked and some of the first tools used by Michalakis to prepare medication, during his early time as a chemist.

Michalakis worked hard throughout his life and was innovative for his time. He enjoyed his childrens’ achievements daily and with pride, till the day he passed.

The children of Michalakis Jacovides gradually began to join MSJ Group following their studies. They are involved however more widely in business and not just the Group. Here’s a short biographical note on each one.

Sotos Jacovides

Sotos (Sotiris) Jacovides was born in Nicosia in 1950 and graduated from the University of West London Business School. He is the President and CEO of MSJ Group in Cyprus. He is also President and CEO of M.S.Jacovides and Sia Ltd, Vetagrica Ltd and Argolan Ltd. Sotos was one of the founders and first President of the Cypro-American Business Union (CyABA) from 1997 to 2003. He has also served as Vice-President of the Pharmaceutical Companies Association from 1992 to 2000, President of the same Association from 2000 to 2008 and now member of the Executive Board.

Savvas Jacovides

Savvas Jacovides was born in Nicosia in 1952 and has a BSc in Economics from PCL University (Westminster) in London. He is a member of the Executive Boards of the Jacovides family businesses in Cyprus and Greece and is President of Lifepharma Ltd (Z.A.M) Executive Board. He has also served as member of the managing directors of APOEL, one of the biggest football clubs in Cyprus, taking part in the UEFA Champions League quarterfinals.

Alexandros Jacovides

Alexandros Jacovides was born in Nicosia in 1954 and holds a BSc and MSc (dinstinction) in Chemical Engineering,from Imperial College London. With valuable knowledge and managerial experience in multinational companies, he is a member of the executive boards of the Jacovides family businesses in both Cyprus and Greece. He is also President of the Executive Board and one of the founders of GenesisPharma, head of the company’s strategic development.

Aris Jacovides

Aris (Aristoclis) Jacovides was born in Nicosia in 1956. He holds a BSc in Biomechanical Chemistry from City University London and and an MBA from INSEAD University in France. He heads up the Iacovides businesses medical equipment development sector, as well as expanding activities in Greece. He is a member of the Executive Boards of the Iacovides businesses in Cyprus and Greece. He is also President and CEO of the M.S Jacovides Hellas company and Vice President of the Executive Board and one of the founders of Genesis Pharma.

The MSJ Group companies

The MSJ Group is made up of 7 companies, covering almost all the health sectors and employing 400 people both in Cyprus and Greece. Here’s a brief breakdown of them:

M.S.Jacovides and Co Ltd

It started out as a pharmacy in 1944. Today it provides both the public and private health care sector in Cyprus, pharmaceutical products, medical and laboratory equipment, wider consumption health products, nutritional supplements, mouth hygiene products and skin care products.

Vetagrica Ltd.

It was established in 1977. Today it operates in the marketing, sales and distribution of veterinary and animal nutritional products, holding a major position in the Cyprus market.

M.S.Jacovides Hellas S.A.

It was established in Athens in 1982. Today it is involved in the trading and distribution of advanced technology medical equipment in the fields of blood transfusion, cardiac surgery and advanced patient care, through sterilisation, general surgery, anaesthesia, intensive care and advance trauma care methods, as well as invasive cardiology, radiology and oncology.

Genesis Pharma S.A.

It was founded in 1997 in Greece by the four Jacovides brothers and Costas Evripides. It has evolved into an innovative Greek pharmaceutical company, specialising in pharmaceutical biotechnology products, generic and innovative medication. Over the past decade it has become one of the largest pharmaceutical companies operating in the Greek market, based on turnover, maintaining one of the top positions in hospital sales around the country. Based in Athens and an affiliate in Cyprus, Genesis Pharma (Cyprus) Ltd, since 2000, it is also active in the wider Southeastern Europe region, mainly Bulgaria, Romania and Croatia.

Lifepharma (Z.A.M.) Ltd.

It was established in 2005 by the MSJ Group. The company operates in Cyprus in the field of OTCs, nutritional supplements, baby and medical/clinical foods, as well as consumer health products. In February 2015, Lifepharma expanded its activities, by integrating a veterinary medication sector, named Lifevet.

Agrolan Ltd.

Established in 2010. Today it produces plant protection and public health products, aimed towards prevention and control of plant diseases and improving agricultural production standards.

EvZeen.com

(WB Evzeen Wellbeing Ltd).). It was founded in 2019 as a health and wellness e-shop, a natural progression of the MSJ Group’s strong and active presence in the health care sector. It includes quite a number of fast increasing range of quality personal hygiene products, beauty products, nutritional supplements, dental products, baby food, care products and many others.