Manufacturing of Pharmaceutical Products

Medicines

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Manufacturing of Pharmaceutical Products
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Health Care
Biotechnology and Pharmaceuticals
Business Model Description

Invest in B2B models to establish or collaborate with local manufacturers in producing essential medicines. There is also an opportunity to develop a dedicated pharmaceutical zone and establish a facility for manufacturing. Other models such as turnkey projects and contract manufacturing models are also available. Examples of companies active in this IOA space:

Morison Ltd is a subsidiary of Hemas Holdings PLC, engaged in pharmaceutical manufacturing with over 80 years of experience. In May 2022, they commenced operations for General Oral Solid Dosage (OSD) and Oral Liquid Dosage (OLD) manufacturing facility with WHO GMP and EU GMP compliant infrastructure and quality management systems (14)

Navesta Pharmaceuticals is a leading privately owned pharmaceutical manufacturer in Sri Lanka, specialised in manufacturing of dry powder Beta Lactam injectables (antibiotics), and their objective is to provide affordable, high-quality, pharmaceuticals to ensure that anyone, anywhere has access to life saving drugs that they need. The company employs over 160 people and has a turnover of over USD 4.2 Mn (LKR 1.5 Bn). (15)

Astron Pharmaceuticals is a pharmaceutical manufacturing company incorporated in 1956 that set up its first pharmaceutical manufacturing facility in the country. It manufactures and markets several major pharmaceutical therapeutic drugs in a variety of dosage forms, strengths and pack sizes (16)

Interpharm (Pvt.) Ltd is a locally owned pharmaceutical manufacturing company established in 1995, with the objective of providing quality healthcare to the nation. This company is also an associate of Gamma Pharmaceuticals (Pvt) Ltd. (17)

GSK Pvt Ltd is a British Multinational pharmaceutical and biotechnology company with global headquarters in London. GSK has a manufacturing plant in the Western Province of Sri Lanka, specifically to manufacture their over-the-counter painkiller brand Panadol (18)

Expected Impact

Affordable and accessible pharmaceuticals to meet local market needs while also resulting in economic benefits through job creation, SME expansion and other ancillary services

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Good health and well-being (SDG 3)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9)
Sector Sources
  • 1) Family Health Bureau https://fhb.health.gov.lk/index.php/en/statistics 2) National Medicinal Drug Policy of Sri Lanka http://www.health.gov.lk/moh_final/english/public/elfinder/files/publications/publishpolicy/8_Medicinal%20Drug.pdf 3) Board of Investment of Sri Lanka https://investsrilanka.com/medical-and-pharmaceutical/ 4) National Medical Drug Policy of Sri Lanka http://www.health.gov.lk/moh_final/english/public/elfinder/files/publications/publishpolicy/8_Medicinal%20Drug.pdf 5) The Future of Pharmaceutical Manufacturing in Sri Lanka https://www.slcpi.org/wp-content/uploads/2020/10/Stax-Report-for-SLCPI_Local-Pharma-Manufacturing_FINAL_08252020.pdf 6)National Health Strategic master Plan 2016-2025 http://www.health.gov.lk/moh_final/english/public/elfinder/files/publications/HMP2016-2025/Health%20%20Admin%20-%20%20HRH.pdf
IOA Sources
  • 7) Pharmaceutical Manufacturing Zone: https://investsrilanka.com/pharmaceutical-zone-arabokka-hambantota/ 8) Regulatory and Market Profile of Sri Lanka https://pharmexcil.com/uploads/countryreports/Sri_Lanka.pdf 9) Ministry of Health (2019). Annual Health Bulletin 2019.http://www.health.gov.lk/moh_final/english/public/elfinder/files/publications/AHB/2020/AHB%202019.pdf 10) Information received through stakeholder consultations 11) Availability of Essential Medicines https://sdg-tracker.org/good-health 12) Sri Lanka Humentarian Needs and Priorities Plan https://srilanka.un.org/index.php/en/185471-sri-lanka-humanitarian-needs-and-priorities-plan 13) Sri Lanka health system review. New Delhi: World Health Organization Regional Office for South-East Asia; 2021.https://apo.who.int/publications/i/item/sri-lanka-health-system-review 14) Morisons PLC https://www.morison.lk/ 15) Navesta Pharmaceuticals: http://echelon.lk/ne100/sanjaya-jayaratne/ 16) Astron Pharmaceuticals: https://www.astron.lk/index.php/pharmaceuticals 17) Interpharm: https://www.lusha.com/business/b12c15a7ed98d539/ 18)GlaxoSmithKline Pharmaceuticals Ltd: https://www.gsk.com/en-gb/locations/sri-lanka/