CIC Healthcare invests on new factory

The CIC Healthcare and Consumer Division, the healthcare arm of CIC Holdings PLC will explore the possibility of finding new export markets following its capacity upgrading and a new manufacturing plant to be commissioned shortly. The company has invested over US $ 2.5 million in a new factory in Mabola and a part of the production will be exported to Europe through a joint venture company.

With the expectation of the National Drug Policy streamlining the industry, better prospects could be envisaged for the pharmaceutical sector, CIC Holdings Healthcare and Consumer Division Director S. Premakumar Weyhenage said.

Sri Lanka's drug import bill stands at $ 500 million and drugs worth Rs 300 million are manufactured locally by over 10 manufacturers at present. It is expected to reach Rs 1 billion within the next three years, he said.

The company will venture into manufacturing syringes which at present are imported at a cost of Rs 600 million annually. "We will supply the entire needs of the government and 10-15 percent of the private sector needs. The plant will be in operation from next year at Ekala and we also explore opportunities in the export market as well," he said." The Government has done a lot for local manufacturers to enable them to compete with imported drugs. However, we do not have laboratory facilities to check the quality of all the imported drugs. The buy-back agreement where manufactured drugs are purchased at a pre-determined price is an encouragement for the sector," Weyhenage said."

The drug policy also poses a few challenges to local manufacturers. We need to overcome them and move forward. Under the new policy, there will be a separate body to look after local industries and exporters. This will protect local industries," he said."

The Healthcare Division will manufacture medical devices within a year. We are committed to improve health sector standards.Research and development is carried out with an overseas technical partner at present and we hope to embark on our own R&D from next year," Weyhenage said.The company has allocated between 10-15 percent from the overall budget to conduct CSR initiatives.

- SJ