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Most of 265 pharmaceutical cos do not follow GMP

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February 22, 2001 

  

(The New Nation)--Novartis (Bangladesh) Limited, a subsidiary of the multinational Novartis Group of Switzerland signed a contract logistics with the ABX Logistics (Bangladesh) Limited, a subsidiary of the world renowned freight forwarding company ABX Logistics Group of Belgium.


Managing Director of Novartis (Bangladesh) Ltd Gerhard G Doege and Managing Director of ABX Logistics (Bangladesh) Ltd Elmar Lins signed the contract on behalf of their respective companies.


The signing ceremony was held at Sonargaon Hotel in the city which was attended by Eddie Dufrenne, Regional Chief Executive Officer, Asia-Pacific of ABX Logistics, Syed Sadaquat Hossain, Executive Director of ABX Logistics (Bangladesh) Ltd and Mahbubul Karim, Director (Technical Operations) of Novartis (Bangladesh) Ltd were present, among others, at the function.


Under the contract, the ABX (Bangladesh) Ltd will provide a comprehensive service, ranging from supply chain management, warehouse management and transport to in-house logistics to Novartis (Bangladesh) Ltd.


Briefing the newsmen after signing the contract, Novartis (Bangladesh) Managing Director Gerhard Doege said that his company strongly felt the need of logistics because of a dramatic increase of Novartis' export business from Bangladesh. "From three orders in a month the volume shall increase to 12 orders in a day by 2004," he said.


Novartis (Bangladesh) Ltd, occupying 4.5 to 5 per cent of the Bangladesh's pharmaceutical market-share worth Tk 700 million, is engaged in the production, marketing and distribution of pharmaceutical products for the domestic as well as for the export markets with generics. The products include brand names, such as Voltaren, Tegretol, Diovan, Spacin, Azyth, Tirlor, Rimactizid and Neoral.


Novartis (Bangladesh) Ltd also occupies No.7 position among top 10 pharmaceutical companies of Bangladesh and does not compromise with the quality of its products, Doege said. Novartis strictly follows the good manufacturing practices, he said.


"Novartis (Bangladesh) paid Tk 200 million as tax last year to the Bangladesh government, but did not receive any duty-drawback from the National Board of Revenue," he said.


The Novartis Group (in Basel, Switzerland) has decided to increase its production capacity in Bangladesh and to extend its range of generic products for the export market substantially, said Doege. "So Novartis in Bangladesh needed a logistics partner with a worldwide dimension that could provide comprehensive services."


Novartis is a world leader in healthcare with core business in pharmaceuticals, consumer health, generics, eye-care, and animal health. The company's annual turnover was US$16.9 billion in 1999, and it invested US$2.4 billion in research and development in that year. Novartis employs about 66,000 people and operates in over 140 countries around the world.


Replying to a question, Doege said there are some 265 pharmaceutical companies operating their businesses in Bangladesh. "Most of these companies do not follow good manufacturing practice, a major criteria to maintain quality in pharmaceutical products," he said.


Explaining the logistic services to be provided to Novartis, ABX (Bangladesh) Ltd Managing Director Elmar Lins said ABX Logistics will handle some 800 pallets of raw materials (200 different types), packaging materials ( 700 different varieties) and finished products (50 different brands). In all, ABX Logistics will process 20 million packs, ensuring their distribution to 65 different countries of the world.


Operations will include planning, purchasing, customs formalities, receiving incoming goods, offering warehouse and storage facilities, production-line supply, handling and storage of finished products, order picking, domestic and international shipments, and export order tracking, he said.


Elmar further said that the ABX Logistics would advise Novartis on the construction and equipment of new warehouse facilities, among others.


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