GSK steps ahead with new factory

Zainul MEEADH

GlaxoSmithKline Sri Lanka, a global pharmaceutical giant and one of the 20 leading pharmaceutical manufacturers in the world have finally launched their first ever pharmaceutical manufacturing plant in the island. It is believed that Sri Lanka's pharmaceutical manufacturing sector will get a new boost when Glaxo Wellcome Ceylon GlaxoSmithKline (GSK) commences their first ever solid pharma production facility by a multinational in the country which is all set to open on April 24.

"This new source of supply will boost our pharma manufacturing sector and will also help stabilize domestic prices. Realizing the high dependency of local market on imported products and the need for setting up domestic production, President Mahinda Rajapaksa proposed in September 2011 that steps are necessary to be taken towards pharma imports substitution. I believe that the new plant in Moratuwa will help us moving towards strategic import replacement in our pharma market,"

Minister of Industry and Commerce of Sri Lanka, Rishad Bathiudeen, said at the commencement of the first ever pharma production facility in Sri Lanka during a press conference held in Colombo.

Remarkably from the industry news, the market share of generic drugs also has increased steadily over the past few years, and now represents almost two-thirds of the market. Thus, The importance of this initiative by GSK is commanded on many grounds due to the fact that it not only helps improve the market stabilization of the local pharmaceutical industry, but such a high dollar quantum together with rates of increase on annual pharma expenditure demonstrates promise for potential investors in this sector. While also putting a halt to the increasing tax prices of pharmaceutical product imports. As it successfully covers one of the proposals in the 2012 budget proposal, which was; to develop manufacturing of pharmaceuticals in Sri Lanka as a Strategic Import Replacement Enterprise by granting tax holidays for investment in the pharmaceuticals production.

According to the official records, the government spends around US $ 140 million annually for medicines alone while according to the Business Monitor International which analyzes country risks across 175 countries, the projected expenditure for Lankan pharmaceuticals for 2011 is expected to increase by 15 percent to US $ 444 million in comparison to $ 386 million in 2010.

While commending and appreciations are done and applauds are given for the timely venture, a lot more in the list still remain unquestioned and unanswered.

Given the recent history of Sri Lanka with the pharmaceutical products that were imported, when some were found to be stale and some to be expired and many not meeting the quality standards of drugs as it should be, out of the questions that are yet to be answered, first of which would be; is Sri Lanka, as a developing country, ready to take up the challenge of producing its own local pharmaceutical products?

Noting about the investment and financial plans, a hopeful, T.S. Dayanand, Expatriate CEO of GSK is quoted saying; "We are also planning to invest a further $ 11.2 million (Rs. 1.4 billion) to expand operations in Sri Lanka.

We are looking to bring in state of the art technology to Sri Lanka" in addition "We also view the upcoming special pharmaceutical zone in Kurunegala positively" he revealed.

Also, adding to it, Minister Bathiudeen, congratulated T.S. Dayanand, Expatriate CEO of GSK Sri Lanka.

"Glaxo Wellcome will be producing a huge 2.5 Billon Panadol brand of Paracetamol tablets volume annually in its new facility in Moratuwa equipped with the state of the art machinery. "

Remarkably from the industry news, the market share of generic drugs also has increased steadily over the past few years, and now represents almost two-thirds of the market. Thus, The importance of this initiative by GSK is commanded on many grounds due to the fact that it not only helps improve the market stabilization of the local pharmaceutical industry, but such a high dollar quantum together with rates of increase on annual pharma expenditure demonstrates promise for potential investors in this sector.

While also putting a halt to the increasing tax prices of pharmaceutical product imports.

As it successfully covers one of the proposals in the 2012 budget proposal, which was; to develop manufacturing of pharmaceuticals in Sri Lanka as a Strategic Import Replacement Enterprise by granting tax holidays for investment in the pharmaceuticals production.

According to the official records, the government spends around US $ 140 million annually for medicines alone while according to the Business Monitor International which analyses country risks across 175 countries, the projected expenditure for Lankan pharmaceuticals for 2011 is expected to increase by 15 percent to US $444 million in comparison to $ 386 Million in 2010.

T.S. Dayanand, Expatriate CEO of GSK said, "We are also planning to invest a further $ 11.2 million (Rs. 1.4 billion) to expand operations in Sri Lanka. We are looking to bring in state of the art technology to Sri Lanka" in addition "We also view the upcoming special pharmaceutical zone in Kurunegala positively" he revealed.