Dec 07, 2018

Farmak JSC doubled tablet production capacity by investing EUR 20 million

On 6 December 2018, Farmak JSC launched a new site manufacturing solid dosage forms. This project, worth EUR 20 million, was under development for 2 years.

 

Launching a new site manufacturing solid dosage units will double the annual production capacity, which will reach 3 billion units per year. Furthermore, due to production expansion, almost 100 new jobs were created.

 

“One of the most important priorities for the Government is creating favorable conditions for business in Ukraine; therefore, launch of new production capacities demonstrates the effectiveness of our efforts in this regard. More so that it is a Ukrainian company with well-established presence on our country’s market. In addition, it is important that Farmak’s drugs take part in the “Affordable Medicines” program initiated by the Ukrainian Government. In 2019, the program will continue providing Ukrainian citizens with affordable medicines and the Government has allocated UAH 1 billion in the budget for this purpose”, stressed Stepan Kubiv, First Vice Prime Minister of Ukraine – Minister of Economic Development and Trade of Ukraine.

 

“Our state needs investments for economic growth, which will promote the development of production and strengthen Ukraine’s positions on the international arena. Now, when there is war in the eastern Ukraine, these investments are especially crucial. We understand this very well. This is why, despite that Europe, Asian countries and the USA are the vector of our development, the heart of our business will always be in Ukraine. Our tax deductions will always be targeted for development of the state. Today, Farmak is the only pharmaceutical company that is in top 100 taxpayers in the country. The amount of taxes paid for 9 months of 2018 is UAH 506 million. We have raised our employees’ salaries by an average of 15%; for the past 5 years, they have increased 2.4 times. Now, due to new production facilities, which will expand our capacities and make Farmak’s high-quality medicines available to more people both in Ukraine and the world, additional jobs will be created. This means that more families in Ukraine will have confidence in the future, earning stable and decent wages. We do business honestly and transparently and believe that this approach will make our country independent, strong, and free. It will make people happy”, noted Filya Zhebrovska, Chairman of the Supervisory Board of Farmak JSC.

At its new production site, Farmak JSC has equipment of leading European brands: Glatt, IMA, Marchesini and others, providing the full cycle of tablet manufacture, from stock loading and processing to output of finished dosage forms. Overall, in 2019, the company plans transferring and deploying about 30 new products at the new site SDF-2.

During the project, the company was advised by European experts having considerable practical experience in the organization of similar GMP-compliant production facilities, starting with design and evaluation of conceptual solutions. It was also based on large-scale research and analytical work aimed at identifying the best method of industrial technology for manufacturing solid dosage forms, considering current trends and needs of the Company.

Launch of the production site takes Farmak JSC closer to its strategic goal of increasing exports to 40% by 2023.

 

Background:

In 1992, Farmak started manufacturing solid dosage forms with the launch of Validol production. Planned capacity of the site was 25 million packs per year.

In 1998, Farmak launched the manufacture of domestic L-thyroxine. USD 3 million were allocated for technical equipment of L-thyroxine tablet line.

In 2005-2007, the SDF-1 project was implemented; associated investments totaled USD 13 million.

Currently, Farmak’s portfolio comprises the following solid dosage forms:

In particular, Farmak produces the following types of tablets:

According to the results of 2017, the share of tablet medicines accounted for one third of Farmak’s revenues.

After the launch of the new site manufacturing solid dosage forms, production capacity of Farmak JSC will double and reach 3 billion units of SDFs per year.

 

Farmak JSC is a Ukrainian pharmaceutical manufacturer of the European level. Thanks to high quality of its products and innovative approaches in production, Farmak JSC has been the leader of the Ukrainian pharmaceutical market since 2010 (according to the structure of market organizations in each of the periods) *.

The Company’s portfolio lists 220 product dossiers. Up to 20 new drugs are launched on the market annually.

Farmak’s products are exported to 20 countries of the world. Farmak JSC received the Import Export Award 2017 as the best exporter / importer among Ukrainian companies.

The Company has 19 production lines complying with the GMP requirements. Farmak JSC has implemented and constantly improves the pharmaceutical quality system in accordance with current regulatory requirements and global standards: ISO and GMP. Every year, the Company undergoes about 15 international inspections and audits.

According to the results of 2017, Farmak JSC became the leader in the supply of medicines in Ukraine under the “Affordable Medicines” program. 8 of 23 molecules participating in the program belong to Farmak’s portfolio. This means 26 finished medicinal products, of which 7 are fully and 19 – partially reimbursed.

According to Ekonomichna Pravda portal, in 2017, Farmak JSC was in TOP 5 of the most innovative companies. Business magazine and 

Focus magazine nominated Farmak JSC as one of the best employers among Ukrainian companies. Farmak JSC was the sole pharmaceutical manufacturer to enter TOP 100 of the taxpayers in 2017 **.

The Company has more than 2,500 employees. Over 80% of management vacancies are filled from the Company’s own reserves. Farmak JSC actively cooperates with 6 leading higher education institutions of Ukraine.

The Company has 5 modern laboratories, as well as its own laboratory and technological R&D complex — a scientific research and experimental area to test new and improve existing technologies for finished medicinal products. The laboratories are fitted with hi-tech equipment from such global manufacturers as Glatt, SBM, Urlinski, Belimed, De Ditrich, Gea, Sartorius, Malvern Instruments, etc.

Since 2015, Farmak JSC has had its own substance production complex (API department) in Shostka. Its planned capacity is 100 tons of substances annually.

 

* based on pharmacy sales in monetary terms according to Proxima Research

** according to the Office for Large Taxpayers of the State Fiscal Service of Ukraine

 

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