A series of information related to the arrest of a former senior leader of the Ministry of Health and previously a former leader of Cuu Long Pharmaceutical Joint Stock Company (Cuu Long company, code DCL), the General Director of the Company said that these are legal issues of the old period, not related to the current operations of the Company.

On March 11, 2022, on the mass media, it was reported that the Office of Police Investigation Agency, under the Vietnam Ministry of Public Security, (C03) had issued a decision to prosecute the defendant, and executed the arrest warrant for the former deputy minister of Health. According to information published by Tuoi Tre newspaper, C03 determined that some related people at the Ministry of Health have not fully performed their assigned responsibilities in signing and performing the contract to order the production of Oseltamivir with Cuu Long Company.

Also according to Tuoi Tre newspaper, the investigation results determined that the defendants did not check to clarify that Cuu Long Company had not paid the supplier of raw materials an amount of $ 3,848 million. This is the discounted amount to buy raw materials originating from the state budget that have been retained, used up by the company and not returned to the Ministry of Health, causing damage to state property.

Before this information, many investors and shareholders called and emailed to ask for information. In order to avoid investors and shareholders having insufficient information, the Company would like to respond as follows:

The incident related to the drug production contract of Oseltamivir of Cuu Long Pharmaceutical Joint Stock Company (hereinafter referred to as Cuu Long Company, stock code DCL) took place from 2005-2007, when the enterprise was just equitized and unlisted, state shareholders still hold control. The incident happened before SCIC State Capital Investment Corporation received the enterprise. At the time of this incident, F.I.T Group JSC (FIT) was not the parent company of DCL and did not own any shares in Cuu Long Company.

Regarding the issues of the amount of $ 3,848 million: Currently, the authorities are still investigating. However, the financial data of Cuu Long Company clearly shows that this amount is not related to the financial status of Cuu Long Company in later periods. At the end of 2008, when the Company’s DCL shares were officially listed on the Ho Chi Minh City Stock Exchange (HSX), the Company’s profit after tax fund was smaller than the profit after tax arising in 2008 (the period after the above-mentioned legal events). These amounts have been distributed since before the state shareholder SCIC completed the divestment at the Company.  

Currently, the Company’s business activities are still going according to the business plan set out by the General Meeting of Shareholders, the Board of Management and the Board of Directors. In 2021, Cuu Long Company achieved a revenue of VND 715 billion, profit after tax of nearly VND 88 billion. Currently, in addition to the pharmaceutical segment, the Company also owns 4 factories producing empty capsules (capsule) with a capacity of up to 8 billion capsules/year. In the coming time, the revenue and profit of Cuu Long Company will improve when launching a number of new product lines; The medical equipment factory that the Company is investing in will come into operation…

Since 2015, with the comprehensive investment of the parent company, F.I.T Group Joint Stock Company, Cuu Long Company has had a clear transformation when building a strong operating foundation from management, operation, production and sales. As a result, in recent years, despite many fluctuations in the pharmaceutical industry, Cuu Long Company still recorded positive business results, creating a solid foundation to be able to breakthrough in business results since 2022.

Ms. Vu Thi Minh Hoai, General Director of the Company said: “The business motto of Cuu Long Company is not only in accordance with the law, but also ensures harmony between the interests of the community and shareholders and employees. Regarding the problems of wrongdoing in the past, even though it was the problems of Cuu Long Company when it was still a state-owned enterprise, the Company is always ready to cooperate with investigations to ensure compliance with the law as well as not affect the business activities of the Company, thereby ensuring the interests of product users, employees and shareholders”.