Neo Pharma, the first pharmaceutical company in Abu Dhabi started a year ago by the UAE business conglomerate NMC group, has charted out an ambitious plan to tap the US and European markets in a big way. The Canada-based global generic player Apotex has successfully completed its audit in the Neo's Abu Dhabi facility and a marketing tie-up is expected to be formed between the two companies shortly.
The company, which has entered into a strategic agreement with the Swiss pharma major, Lagap recently, for a production service out sourcing, would also market the products in the Middle East.
According to Neo sources, in its Abu Dhabi facility, the production has commenced in full swing and exports to Switzerland had been started within the first operational year. The company is in negotiations with several other global majors as well for manufacturing tie-ups, top-level sources in the company informed Pharmabiz.
Neo Pharma's Dhs.90 million (US$ 25million) plant's design is based on the latest modular concept in pharma manufacturing and is fully compliant with international standards.
The company has already established strategic alliance with multinationals like Ranbaxy, Biocon and Dr. Reddy's Lab from India, the Pfizer, US; Canada's Jamieson; SM Pharmaceuticals, Malaysia for product licensing and technical know how.
Sources said the company was in the process of introducing many blockbuster molecules in the domestic market, including key antibiotics such as Co-amoxyclav, Ciprofloxacin and Cefuroxime etc. Neo Pharma will soon start manufacturing of nutraceutical and OTC products, besides plans to enter high growth segments such as cardiovascular, neuro-psychiatry and anti-diabetes.
A slew of OTC and nutraceutical products such as oral dehydration salts, tonics, cough syrups and food supplements are also on the anvil. Neopharma's product range covers the wide range of anti-infectives, anti-inflammatory and arthritis, cardiovascular, anti-diabetic, gastrointestinal protectives, drugs for respiratory system, cough expectorants and multivitamin tonics.
Company sources estimate the year 2005 to be crucial in its plans of foraying into the international markets. The GCC and European audits are also going on as part of Neopharma's entry into the highly regulated European and American markets and GCC countries.
Besides introducing products in the local market, an entry into the neighbouring Middle East countries and other GCC countries will mark Neopharma's first steps towards globalization. Simultaneously, the company is gearing up to set foot into the regulated markets, thus marking the ultimate direction of Neopharma's globalization programme, the sources said.
So far multinational companies dominated the Middle East pharmaceuticals market. With the new patent regime, cost containment is a major point of discussion across the GCC countries, and focus on generic drugs has gained greater prominence. Neo Pharma was set up by the NMC group, one of the leading healthcare providers in the Middle East, with a view to produce competitively priced world-class pharmaceutical products in the Middle East to address the cost containment issue, and for globalization of a local company across the Middle East, Africa and beyond.
Company sources said that Neopharma was strongly supported by the UAE government with its healthcare policy that actively encourages indigenous production and entrepreneurship by offering incentives and concessions that include easier registration process, preference in tenders, larger production volumes, distinct price preference and easier market access and acceptance for locally manufactured products, especially in the GCC countries.
The NMC group has a three-decade-old history with diverse interests in healthcare services, runs a chain of corporate hospitals and pharmacy chain in the Middle East. The group has diverse interests in many fields, including real estate, hotels and restaurants, IT, financial services, retail chain etc.