80 years of MSJ Group: Michel S. Jacovides’ strong foundations, the strategic decisions and rapid growth

Back when pharmacists were still preparing medicines in their small drug laboratories, following the doctor's detailed prescription, a pioneering pharmacist of the time had the foresight to get ahead of developments, predicting that in the future medicines would be sold pre-packaged, and to look for pharmaceutical companies from abroad to start imports to Cyprus.

This pharmacist was the young Michel S. Jacovides, who in 1944 opened his own, very popular, pharmacy, "Michel Pharmacy", which was located in the busiest area of ​​- then free - Nicosia, at 10-15 Vitsi Street.

Michel S. Jacovides in his pharmacy, 1940s

His first and most important deal came in 1949, with Jacovides becoming the exclusive distributor of pre-packaged medicines by the leading US pharmaceutical company Merck & Co (MSD). An agreement which made him one of the first importers and distributors of pre-packaged pharmaceutical products in the Cypriot market.

And he didn’t stop there. He took his second important and defining step in 1956, when during the major polio epidemic he took the initiative to import the polio vaccine from Belgium.

Michel Pharmacy continued to grow in the 1960s, leading Michel Jacovides to open another two pharmacies, in Ayios Dometios and on Makarios Avenue.

In the years that followed, he continued to secure important and pioneering for the times representative deals, for the importation and distribution of pharmaceutical products, thus laying the foundations for the rapid development of what we now know as the MSJ Group.

The new era, with Michel S. Jacovides’ four sons

In the early 1970s, Michel Jacovides’ sons started returning to Cyprus from their studies abroad; Sotos, Savvas, Alexandros and Aris, who gradually joined the family business and started to explore new business opportunities and broaden the company's activities in the fields of medicine and healthcare.

Their first goal was to preserve their father's pharmacies and later on, to develop commercial enterprises.

Sotos was first to join the family business, visiting clients, doctors and pharmacies in the mornings in a bid to feel out the Cypriot market and momentum, as well as create a strong network that would assist the growth that was to follow. He would spend his afternoons at the office, organising the business and creating a development plan.

The family business took a massive hit from the Turkish invasion, which saw it lose more than half its – very valuable – stock that was stored in its Famagusta warehouse and at the now-occupied town’s port.

However, by the 1980s, all of the brothers had returned from their studies and joined the company, implementing their common vision that was based on teamwork, equal distribution of labour and mutual respect.

They specifically focused on wholesale trade, promotion, scientific support and domestic market distribution. They eventually closed down their father’s pharmacy chain and developed the company’s operations through opportunities that led to further growth in additional healthcare sectors.

Strategic decisions and expansion to Greece

In the early 1980s, they took the strategic decision to expand to Greece, in the medical technology sector, and later on in the pharmaceutical sector.

M.S. Jacovides Hellas SA was founded in 1982 with the four brothers as shareholders. It was one of the first ever Cypriot companies to become established in Greece and this is considered a huge milestone in the Group’s history. The company grew rapidly by introducing innovative products such as blood filters integrated into collection bags.

A few years later, the four brothers expanded into the field of biotech pharmaceuticals in Greece, creating the company Genesis Pharma in collaboration with Konstantinos Euripides, which specialises in biotech drugs for diseases such as multiple sclerosis, cancer and multiple myeloma.

In Cyprus, and based on a horizontal development strategy in various health sectors, the expansion of operations came through partnerships, mergers and acquisitions of companies, as well as new areas of activity.

The most important acquisitions that gave the Group its leading position in Cyprus’ healthcare sector were those of Lifepharma and Health & Diet Food Center (H&D) in 2005 and 2017 respectively, the merger of Pharmnet with Marathon Distributors in 2009, and the agreement with Cosmos Trading (now Laiko-Cosmos Trading).

At the same time in 2019, following the market trends, the Group launched the online health, wellness and beauty store EvZeen.com.

Today the Jacovides brothers are Board of Directors members of the MSJ Group, with each continuing to have their own position and area of ​​expertise, in the different companies of the Group.

Left to right, Directors Alexandros, Savvas, Sotos and Aris Jacovides

The third generation and expansion of operations

Speaking to InBusinessNews recently, the President and CEO of MSJ Group in Cyprus, Sotos Jacovides, said the group’s main goal now is to pass the leadership on from the second generation to the third, which has joined the Group to bring new ideas, create and develop departments and new processes, increase productivity and lead to modernisation and further growth.

This is a process, he said, which gradually began around 10 years ago, with five third-generation family members having joined so far.

The family’s third generation, from left: Georgia, Chryssie, Phaedra and Christina Jacovides, and standing behind, Michalis and Christos Jacovides

“The aim is to complete the transition of the company’s and MSJ Group’s leadership smoothly to the new generation and of course, to continue to expand our operations as the Group has a significant stake in the private sector also, with a variety of health products,” said Jacovides, adding: “The new generation is the one that brings something new and different. With the same values and common vision for growth, we are convinced they will lead Group’s growth to another level.”

The companies that make up MSJ Group

Eighty years after Michel Pharmacy first opened, MSJ Group boasts a successful history in the health sectors of Cyprus and Greece, which is based on continuous growth and adjusting to market needs and new technologies, but always in line with its founder’s values and vision.

Its leading position is supported by longstanding important partnerships with well-known companies abroad and internationally-recognised brands.

Currently, MSJ Group employs 400 executives in 14 countries, including Cyprus, Greece and Central and Eastern European countries, at the following companies:

• Μ.S. Jacovides,
• Lifepharma,
• Genesis Pharma Cyprus,
• Vetagrica, Agrolan,
• EvZeen.com,
• Μ.S. Jacovides Hellas, and
• Genesis Pharma.

The companies are active in a number of healthcare sectors. Some of the product categories they market include: medicines, biopharmaceuticals, human physiological immunoglobulins, over-the-counter medicines, nutritional supplements, clinical and infant nutrition, medical technology, consumer products, oral hygiene products, dermocosmetics, animal health and nutrition products and plant protection products.