Douglas Pharmaceuticals expanding exports
Plans to begin exporting in areas where it has no infrastructure.
Wednesday, January 18 2012 || News || BY Jazial Crossley, Businessday.co.nz
The Auckland-based company is New Zealand's largest manufacturer of pharmaceuticals and already sells 15 of its generic products to 35 countries, with an export turnover of $85 million.
Founder and managing director Sir Graeme Douglas said it was working with an international pharmaceutical firm to begin exporting to areas where it has no infrastructure, such as Africa, South America, Central America and Eastern Europe.
''We have formed a close relationship with a major pharmaceutal company who will have to remain anonymous at this stage until we make a public announcement. To establish infrastructure in those countries is not easy, unless of course you are very well financed and structured,'' he said.
Douglas Pharmaceuticals is known for its debt-free operating structure.
It was too commercially sensitive for him to provide further details yet, Douglas said.
''In our business, registration procedures can take anything from 12 months to three years, and while we have started the procedures in most of the territories, it's still early days.''
Douglas Pharmaceuticals specialises in products in the areas of immuno-suppression, the central nervous system, oncology and dermatology.
In the year ahead another of the company's biggest priorities is to establish itself in the United States, which represents 50 per cent of the world's total pharmaceutical expenditure.
It has three products in the intense process of registration with the US Food & Drug Administration (FDA).
''One has been there five years but we understand, from as much as the FDA will tell you, that it's getting very close to completion. It's a big ambition for us because the United States is an enormous market, and that in itself provides all sorts of challenges,'' Douglas said.
''While we have already formed a relationship with a company to do marketing, if it is half as successful as they are forecasting the quantities are big - I mean really big - and we've got to be prepared. We'll need bigger machines to cope with increased demand.''
It was announced on Monday that Sir Graeme Douglas, who began working as a pharmacist in the 1950s, was a finalist for outstanding international business leader in the 2012 New Zealand International Business Awards.
Douglas Pharmaceuitcals produced more than 455 million tablets, 270,000 litres and 31 metric tonnes of pharmaceutical medicines, liquids and creams last year.
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