Pharmaceutical factory eyes larger market niche
Pharmaceutical factory eyes larger market niche
The State Enterprise for Pharmaceutical Factory No. 3 is considering teaming up with a private company in hopes of gaining a greater market share.
The factory's Deputy Managing Director, Dr Phoukhong Chommala, said some private investors had already pointed out the need for joint development of the pharmaceutical industry in the years to come.
“We are assessing the structure of potential investors before submitting a proposal to the Ministry of Health,” he said. “We are now looking at their finances and intent, and trying to identify the best form of joint venture to ensure the industry grows in a sustainable way.”
In particular, the factory would like an investor to improve the packaging of its drugs. Pharmaceutical Factory No. 3 currently produces more than 100 different products, including traditional medicines, injectable medicines, tablets, syrup, and items for external use.
The factory's products have a 20 percent market share and are known for their good quality, but factory managers feel the packaging could do with some improvement.
The facility has two internationally-recognised certificates relating to quality: Good Manufacturing Products and ISO 9001:2008. Laos has five pharmaceutical factories, including the State Enterprise for Pharmaceutical Factory No. 3 and two producers of traditional medicine.
In developing Pharmaceuti-cal Factory No. 3, Dr Phoukhong said a joint venture could help the factory to expand its market share. The factory plans to distribute its medicines nationwide so that people in rural areas have access to medication when needed.
The factory plans to build a new facility as part of its expansion plans.
However, the factory will carefully assess market demand before increasing output.
“We will conduct a market survey before producing any additional drugs. We will manufacture as much as is needed by pharmacies and central and regional hospitals,” Dr Phoukhong said.
He reviewed the development of the factory since it first began manufacturing drugs in 1987. Initially the factory produced medication as requested by the Party and government. But now, in addition to producing the amount stipulated by the Party, the factory produces medicines for distribution to the local market to ensure there are sufficient products in stock in the event of an emergency.
Dr Phoukhong said Pharmaceutical Factory No. 3 was an outstanding example of the leadership of the Lao People's Revolutionary Party since Laos introduced its renovation policy in 1986.
The factory is also a symbol of the friendship between Laos and Japan, as the government of Japan funded the construction of the factory from 1984-86.
After many years of growth, the factory now pays more than 2 billion kip in taxes each year.
