On November 22, 2022, Cuu Long Pharmaceutical Joint Stock Company was issued the Decision and Investment Registration Certificate for the Project of EU-GMP standard Pharmaceutical Factory by the Long An Economic Zone Authority.

This is one of 12 typical projects of Long An province.

The project of EU-GMP standard pharmaceutical factory of Cuu Long Pharmaceutical Joint Stock Company has a scale of 50,000 m2, total investment capital of VND 1,035 billion, built at Lot G-1, N2 road, Huu Thanh Industrial Park, Huu Thanh commune, Duc Hoa district, Long An province.

The factory achieves production capacity of drugs and pharmaceuticals of 1.6 billion products/year, medical supplies such as syringes, needles, infusion lines, blood collection tubes, intravenous catheters, etc of 360 million production units/year.

Cuu Long Pharmaceutical Joint Stock Company received the Investment Registration Certificate for the Project of EU-GMP standard Pharmaceutical Factory.

This is a set of principles and standards developed and issued by the European Medicines Agency, to control activities or problems occurring at pharmaceutical manufacturing facilities, produce drugs of high quality, thereby ensuring the consumer health.

Circular 15/2019/TT-BYT issued by the Ministry of Health officially took effect in 2019, which changes the criteria for classification of drug groups included in the bid.

According to such classification criteria, drugs produced from the factories of Cuu Long Pharmaceutical Joint Stock Company are classified into groups 1 and 2. The drugs produced from EU GMP factories in Vietnam will be the first choice to replace other types of proprietary drugs and generic drugs imported.

That the project of EU-GMP standard pharmaceutical factory of Cuu Long Pharmaceutical Joint Stock Company comes into operation will create a major step for Cuu Long Pharmaceutical Joint Stock Company in affirming its competitive advantage in product quality, contributing to the development of Vietnam’s pharmaceutical industry on the world’s pharmaceutical map, and creating more jobs for local workers.

With more than 45 years of pharmaceutical operation, Cuu Long Pharmaceutical Joint Stock Company becomes a familiar and prestigious name to consumers, pharmacies and major hospitals in Vietnam’s provinces and cities.

Thanks to robust investment from the parent company, Cuu Long Pharmaceutical Joint Stock Company aims to become Vietnam’s leading prestigious pharmaceutical company which is highly appreciated by patients and the community through the diversity of product categories, satisfaction with patients’ needs for product quality, broad distribution system, thereby fulfilling the mission of connection and improvement of community life through optimal health solutions.

As of the third quarter of 2022, Cuu Long Pharmaceutical Joint Stock Company reached total assets of over VND 2,138 billion, an increase of 174% against December 31, 2015, equity of over VND 1,443 billion against December 31, 2015, an increase of 154% against 2015. The business of Cuu Long Pharmaceutical Joint Stock Company is still following the business plan approved by the General Meeting of Shareholders.

As recognized in its consolidated financial statements, for 9 months of 2022, Cuu Long Pharmaceutical Joint Stock Company achieved the accumulated net revenue of VND 670.71 billion, an increase of VND 161.86 billion against the same period last year and the after-tax profit of VND 69,081 billion.

In addition, Cuu Long Pharmaceutical Joint Stock Company continues to invest in expansion and upgrading of the factory and capacity improvement. Particularly, Cuu Long Pharmaceutical Joint Stock Company continues to implement the Capsule Factory expansion project, phase 5 with an investment of about VND 232.5 billion, thereby increasing the total capacity of the factory by 2.8 billion capsules/year.

The Company also implements new construction of a medical equipment factory, with a scale of 10,846.6 m2, investment capital of about VND 350 billion, capacity of 21.5 million products/month.

Regarding the information that Cuu Long Pharmaceutical Joint Stock Company is involved in the case of lack of responsibility, causing serious consequence; Taking advantage of positions and powers while performing official duties at the Ministry of Health and related individuals and units under the judgement according to the authority, Mr. Luong Trong Hai, General Director of the Company affirmed that: “Regarding the past violations of Cuu Long Pharmaceutical Joint Stock Company when it was still a State-owned enterprise, we are always ready to cooperate with the investigation authority to comply with the law and not to affect our business activities, thereby ensuring the interests of employees, shareholders and related organizations as well as building a transparent business environment, creating the trust for investors.

Cuu Long Pharmaceutical Joint Stock Company currently operates in a normal way, achieves high growth and continues to be invested to expand its scale.

SCIC has divested from Cuu Long Pharmaceutical Joint Stock Company since the first quarter of 2015. Accordingly, along with the comprehensive restructuring plan, Cuu Long Pharmaceutical Joint Stock Company has been additionally provided with key human resources in management, operation, production, sales, etc in order to develop production and business activities and good control over the management of the company.

The case occurred related to the Oseltamivir production contract between the Ministry of Health and Cuu Long Pharmaceutical Joint Stock Company), including the content of using the amount of USD 3,848,000 unpaid to the supplier after accounting for the reduction in the cost of raw materials purchased and recognition of profits in 2006, 2007, 2008.

According to a representative of Cuu Long Pharmaceutical Joint Stock Company, the Company actively coordinated so that the conclusion was soon made for the case. The violations in the Oseltamivir production case which occurred in the 2006 – 2008 period are not related to Cuu Long Pharmaceutical Joint Stock Company in the current period (the 2015 – 2022 period).

According to documents submitted by Cuu Long Pharmaceutical Joint Stock Company to the authorities, Cuu Long Pharmaceutical Joint Stock Company is managed by the State and represented by SCIC in the 2006-2014 period. SCIC divested capital through trading on the stock exchange in 2015. Therefore, the violations which occurred in the 2006-2008 period are not related to Cuu Long Pharmaceutical Joint Stock Company in the current period (2015-2022).

According to the Indictment No. 4410/CT-VKSTC-V5 dated September 8, 2022 of the Supreme People’s Procuracy of Vietnam, the accounting and utilization of the amount of USD 3,848,000, equivalent to VND 61,692,238,500 were improperly performed by the individuals of the Board of Management of Cuu Long Pharmaceutical Joint Stock Company in the 2006 – 2014  period, specifically, they accounted for a decrease in cost of capital in violation of accounting principles, thereby, using such amount in the 2006 – 2014 period to pay the following items: dividends to shareholders, corporate income tax, remuneration to members of the Board of Directors, Board of Supervisors, bonus and provisions for investment funds and social welfare of the Company.

Therefore, the members of the Management Board of the Company in the 2006-2014 period and related individuals and units are being prosecuted by the Supreme People’s Procuracy of Vietnam for their violations (if any).

Article 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