Prague  - Czech generics drugs maker Zentiva reported Monday a net profit of 469.7 million koruny (29.2 million dollars) in the first quarter of 2008, down 9.5 per cent year-on-year.

The firm said the drop came on back of higher costs related to its 2007 acquisition of Turkish pharmaceutical company Eczacibasi.

Zentiva's sales grew 29.6 per cent to 4.379 billion koruny compared to the first quarter of 2007, mostly reflecting the inclusion of the Turkish unit's performance, the company said.

First-quarter sales in the Czech Republic declined 14.5 per cent to some 915 million koruny due to direct fees in doctor's offices and pharmacies, the company said.

The payments, aimed at curbing waste in healthcare, were introduced in January as first part of centre-right government's healthcare reform.

Zentiva is active across central and eastern Europe. Outside the Czech Republic, the generics maker focusses on markets in Turkey, Romania, Slovakia, Russia and Poland. (dpa)