| By Daisy Wang, Asia Manufacturing Pharma |
| Wednesday, 04 February 2009 |
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Despite the recent stock market turbulence, pharmaceutical stocks have proved to be one of the few safe havens for investors amid widespread wreckage. Shandong Lukang Pharmaceutical, a China-based manufacturer of antibiotics, is poised for spectacular growth in the future, driven by the country’s recently launched medical reform plan. |
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Under the plan, the Chinese government is expected to increase investment in the country’s medical system by RMB120 billion (approx. US$17.5 billion) per year and improve services at grassroots medical institutions, in particular, county-run hospitals, township and village clinics (with emphasis on those in remote villages), as well as community health centers in less developed cities.
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As one of China’s four largest antibiotics producers, Shandong Lukang Pharmaceutical’s core business is the manufacturer and distribution of human-use, veterinary and agricultural antibiotics, semi-synthetic antibiotics, antibiotic formulations, biomedicines, bulk drug intermediates, drug-resin complexes and glucose.
The company’s main active pharmaceutical ingredients (APIs), including penicillin and 7-ACA, witnessed a substantial increase in price driven by a series of policies put in place by the Chinese government to overhaul the pharmaceutical sector and improve the environment.
Revenue and profit from core business experienced rapid growth in 2008, resulting in net profit for the first half of 2008 exceeding the prior year’s by 60 per cent. |
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In 2007, Shandong Lukang Pharmaceutical passed GMP certification and received production licenses and approvals for feed additives. The company’s products are widely accepted in the domestic market as well as in over 40 overseas markets.
Shandong Lukang Pharmaceutical is well positioned to enjoy broad development prospects in the future, according to analysts.
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