Monday, October 2, 2017

State Pharmaceuticals Corporation targets Rs 1.9 bn profit by end 2017

The State Pharmaceuticals Corporation (SPC) a state-owned enterprise will once again record a profit in the excess of Rs. 1.9 billion by end of 2017 said its Chairman, Sarath Liyange.

In an interview with Daily News business he however said that the profit was around Rs 2.5 billion in 2016.

“We will fall short of previous year profit due to the lowering of prices of some of the essential pharmaceutical items by the government this year.”

He said that the corporation in the last two years has made a remarkable turnaround emerging as a profit making organization.

SPC set up in 1974 is the largest supplier of drugs in the country, and is tasked with providing quality-assured health care items that are safe and effective, at an affordable price, while educating the public on the rational use of drugs. It also employees about 600 staff. “I am ashamed to admit that SPC was branded as a one of the most corrupt state owned entities and we have now changed and this is one of the main reasons for the organization to be making profits once again.”

He also said that with quality drugs SPC once again won confidence and also regained back its market share and has opened new outlets to reach out to the masses. “We are also moving some of the Osu Sala outlets to our own premises, which are better locations and this too will cut costs and bring in more business.”

Liyanage said that they have decided to stop all medical drug imports to the country by 2020.

“To meet this objective we have tied up with both local and foreign Pharmaceutical manufacturing companies to set up their factories in Sri Lanka. We have given them a buy back grantee and pharmaceutical companies have already set up two of the region’s largest manufacturing plants in Horana and Koggala. They are also allowed to import tax free and this is encouraging more companies to come and start factories in Sri Lanka.”

Currently SPC manufactures ‘Jeevani’ health energy drink and 47 other items and they may also look at increasing the precut line in the future.

He also said that in a bid to share some of their projects they would offer around 70% salary increment to the staff in several stages. Picture by Mahinda Vithananchchci

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