JSP Pharmaceutical Manufacturing (Thailand) Plc, a distributor of medicines and nutritional supplements, expects revenue to grow by 30% this year, partly driven by the launch of its research and development service to cater to the growing medicine industry.
The company earned 436 million baht last year but posted a loss of 17.4 million baht.
In the first quarter, revenue reached 112.6 million baht, with profit standing at 1.8 million baht.
The growth of the domestic medicine industry will boost demand for R&D in making various types of medicines, thus becoming a new revenue channel for the company, said Sittichai Daengprasert, chief executive of JSP.
"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," he said.
JSP Pharmaceutical Manufacturing spent 25 million baht on a new laboratory that meets the good manufacturing practice (GMP) and pharmaceutical inspection co-operation scheme (PIC/s) standards.
The company expects the laboratory to support R&D projects of its customers. The facility can reduce the working hours of researchers and serve six R&D projects a year, said Mr Sittichai.
Customers can use the laboratory to develop both traditional and modern medicines, cosmetic products as well as new nutritional supplements for humans and animals.
The value of the local medicine industry stood at 200 billion baht last year, with 90% of products sold in the country.
To export more medicines is a challenging task for manufacturers as they need to improve and develop products to meet global standards.
There are many pharmaceutical factories in Thailand, but only a small number meet GMP and PIC/s standards, according to JSP Pharmaceutical Manufacturing.
Mr Sittichai said the new laboratory will help level up medicine manufacturing in the country, enabling manufacturers to make new medicine formulas and raw materials so that they depend less on imports.
At present, more than 90% of raw materials are imported, according to the company.
JSP Pharmaceutical Manufacturing currently serves as an original equipment manufacturer supplying 60% of its products to customers. The remainder are products marketed under its own brands.
Mr Sittichai said the company aims to increase the proportion of the latter to 50% in 2024.
