On November 22nd, 2022, Cuu Long Pharmaceutical Joint Stock Company was awarded the Decision and Investment Registration Certificate for the EU-GMP Pharmaceutical Factory Project by Long An Provincial Economic Zone Management Board. This is one of 12 typical projects in Long An province.
The EU-GMP standard pharmaceutical factory project of Cuu Long Pharmaceutical, with an area of 50,000 m2 and total investment capital of VND 1,035 billion, is implemented in Lot G-1, Road N2, Huu Thanh Industrial Park, Huu Thanh Commune, Duc Hoa District, Long An Province.
The factory’s production capacity of drugs and pharmaceuticals reaches 1.6 billion products/year; meanwhile, medical supplies such as needles, infusion lines, blood sample canisters, venous needles … is 360 million products/year.
Cuu Long Pharmaceutical Joint Stock Company receives the Investment Registration Certificate for EU-GMP Standard Pharmaceutical Factory Project |
In the current trend of global integration of the pharmaceutical sector, Good Manufacturing Practices – European Union (EU – GMP) is one of the highest standards of pharmaceutical factories in the world.
This is a set of principles and standards developed and promulgated by the European Medicines Agency to control activities or problems occurring at pharmaceutical manufacturing facilities to produce high-quality and healthy medicines for consumers.
In 2019, the official enforcement of Circular 15/2019/TT-BYT issued by the Ministry of Health changed the criteria in the division of drug groups participating in the bidding.
In particular, drugs produced from the factories of Cuu Long Pharmaceutical are classified in Group 1 and Group 2. Drugs manufactured from GMP EU standard factories in Vietnam will be the first choice to replace generic drugs and imported generics.
After the EU-GMP Standard Pharmaceutical Factory project comes into operation, it will create a great step forward for Cuu Long Pharmaceutical in affirming its competitive advantage in quality and products, contributing to the development of Vietnam’s pharmaceutical industry on the world pharmaceutical map and creating more jobs for local workers.
With more than 45 years of operation in the field of pharmacy, Cuu Long Pharmaceutical has become a familiar and prestigious name to consumers, pharmacies, and large hospitals in the provinces and cities of Vietnam.
Thanks to the strong investment from the parent company, Cuu Long Pharmaceutical aims to become the leading and Vietnamese pharmaceutical company most appreciated by patients and the community through a variety of product categories to meet the needs of patients for product quality and wide distribution system to, thereby, fulfill the mission of connecting and improving the lives of the community through optimal health solutions.
As of the third quarter of 2022, Cuu Long Pharmaceutical’s total assets are more than VND 2,138 billion with a growth of 174% compared to December 31st, 2015, equity of more than VND 1,443 billion compared to December 31st, 2015, and a growth of 154% compared to 2015. Currently, Cuu Long Pharmaceutical’s business activities are still taking place in accordance with the business plan approved by the General Meeting of Shareholders
Regarding the accumulated results in the first 9 months of 2022, net revenue on the consolidated financial statements of Cuu Long Pharmaceutical recorded VND 670.71 billion, an increase of VND 161.86 billion over the same period last year, while profit after tax reached VND 69,081 billion.
Along with that, Cuu Long Pharmaceutical continues to invest to expand and upgrade factories as well as increase capacity. In particular, for the Capsule Factory, the Company continues the expansion project of Phase 5 with an investment of about VND 232.5 billion to make the total capacity of the factory increase by 2.8 billion capsules per year.
For the Medical Supplies and Equipment Factory, the Company has built a new medical materials and equipment factory with a scale of 10,846.6 m2, investment capital of about VND 350 billion, and capacity of 21.5 million products/month
Regarding the issue that Cuu Long Pharmaceutical is involved in the case of irresponsibility causing serious consequences and abusing positions of authority when performing official duties occurring at the Ministry of Health and related individuals who have been trying, Mr. Luong Trong Hai, General Director of the Company affirmed that “For the past wrongdoings of Cuu Long Pharmaceutical when it was a state-owned enterprise, we are always ready to coordinate the investigation to comply with the law and not affect the company’s business activities, thereby ensuring the interests of employees, shareholders, and related organizations as well as building a transparent business environment and creating peace of mind for investors.
Cuu Long Pharmaceutical Joint Stock Company is currently operating normally, achieving high growth, and continues to be invested to expand its scale.
In the first quarter of 2015, SCIC divested its stake in Cuu Long Pharmaceutical. Accordingly, along with the comprehensive restructuring plan, Cuu Long Pharmaceutical has been supplemented with key personnel in management, administration, production, sales … aiming to develop production and business activities and well control the management of the company.
The case relates to the Oseltamivir production contract between the Ministry of Health and Cuu Long Pharmaceutical, concerning the use of USD 3,848,000 unpaid to suppliers after accounting for the reduction of the cost of purchasing Oseltamivir raw materials and recording profits in 2006, 2007, and 2008.
According to the representative of Cuu Long Pharmaceutical, the Company has actively coordinated so that the case can be concluded soon. The violations in the production of Oseltamivir drugs that took place between 2006 and 2008 are not related to Cuu Long Pharmaceutical Joint Stock Company in the current period (from 2015 to 2022).
According to documents sent by Cuu Long Pharmaceutical to the authorities, in the period of 2006-2014, Cuu Long Pharmaceutical was under state management represented by SCIC. In 2015, SCIC divested through trading on the stock exchange. Therefore, the violations that took place in the period of 2006-2008 are not related to Cuu Long Pharmaceutical in the current period (2015 – 2022).
According to Indictment No. 4410/CT-VKSTC-V5 dated September 8th, 2022 of the Procuracy of the Supreme People’s Court, the accounting and use of the amount of USD 3,848,000, equivalent to VND 61,692,238,500, was decided by individuals of the Cuu Long Pharmaceutical Executive Board in the period of 2006 – 2014 to account for capital discounts, that were contrary to accounting principles. Then, they used this amount in 2006-2008 to pay dividends to shareholders, corporate income tax, remuneration to members of the Board of Directors and the Executive Board, reward, investment funds, and social welfare of the Company.
Therefore, members of the Company’s Executive Board in the period of 2006-2014 and related individuals and units are being prosecuted by the Supreme People’s Procuracy for their misconduct (if any).
Artical link: https://baodautu.vn/duoc-cuu-long-nhan-dang-ky-dau-tu-cho-du-an-nha-may-duoc-pham-dat-tieu-chuan-eu-gmp-d178413.html