Pharmaceutical R&D lab investment drives JSP Pharma to target 30% revenue growth
JSP Pharmaceutical Manufacturing (Thailand) Plc, a company specialising in the distribution of medicines and nutritional supplements, is eyeing a 30% increase in revenue this year, which is partly due to the introduction of its new pharmaceutical research and development (R&D) service for the growing medical industry. In 2020, JSP earned 436 million baht, albeit incurring a loss of 17.4 million baht.
During the first quarter, the firm’s profit reached 1.8 million baht, with revenue amounting to 112.6 million baht. Sittichai Daengprasert, Chief Executive of JSP, believes that the growing domestic medicine industry will lead to a higher demand for pharmaceutical R&D, resulting in a new revenue stream for his company. He said…
“The company is seeking an opportunity in the R&D business by building a new pharmaceutical laboratory to serve small and medium-sized enterprises which want to develop products for domestic and overseas sales.”
To this effect, JSP Pharmaceutical Manufacturing invested 25 million baht in a new laboratory that complies with good manufacturing practice (GMP) and pharmaceutical inspection co-operation scheme (PIC/s) standards. The company anticipates that this state-of-the-art laboratory will support pharmaceutical R&D work for its clients, streamline researchers’ workload, and accommodate six projects per annum.
The pharmaceutical R&D facility will enable customers to develop a wide range of products, including traditional and modern medicines, cosmetics, and new nutritional supplements for both humans and animals. Last year, the local medicine industry was valued at 200 billion baht, with 90% of products being sold within the country, reported Bangkok Post.
However, exporting more medicines remains challenging for pharmaceutical R&D manufacturers who must continually update and develop their products to adhere to global standards. According to JSP Pharmaceutical Manufacturing, there is a multitude of pharmaceutical factories in Thailand, but only a tiny fraction of these meet GMP and PIC/s requirements.
Sittichai notes that this new laboratory will enhance medicine manufacturing in Thailand, enabling manufacturers to devise new medicine formulas and raw materials, thereby reducing their reliance on imports and enhancing pharmaceutical R&D. Currently, over 90% of raw materials are imported, as per the company’s data.
JSP Pharmaceutical Manufacturing, a company involved in pharmaceutical R&D, operates as an original equipment manufacturer, supplying 60% of its products to customers, while the rest are marketed under its brands. Sittichai aims to raise the latter proportion to 50% by 2024.
