€13m investment in Pharmamed

Pharmaco Ltd, an Icelandic multinational pharmaceutical group, intends to invest over €13 million (about Lm6 million) this year in its Maltese subsidiary Pharmamed Ltd.

Pharmamed managing director Steinthor Palsson yesterday stressed that the company would be in a much stronger position if Malta joined the EU and that it would be more difficult for the company to penetrate the European market if Malta decided to stay out.

Speaking during a visit by Prime Minister Eddie Fenech Adami, Mr Palsson said the company was planning significant investment this year to upgrade its facilities - in new equipment and new technology. It is also planning to pump significant investment into research to develop new medicines to ensure future growth.

So far, Mr Palsson said, the company's market had been Third World countries.

"So we are now changing our focus by exporting to the EU. The European market is one of the most important markets in the world and we believe that penetrating the European market will mean increasing our revenue significantly."

Mr Palsson said things would be "more difficult" for the company if Malta did not join the EU.

Asked whether he had any message to pass on to employees given that his company was mentioned by Labour leader Alfred Sant as being threatened by EU membership, Mr Palsson said the company was investing heavily in the Maltese plant. He was very confident about the future and optimistic that it would experience significant growth.

"Should Malta join the EU, which is one of the most important pharmaceutical markets in the world, Pharmamed believes it will be in an even stronger position to serve markets not only in Europe but also all over the world."

Pharmamed Ltd, located in Bulebel, is a generic pharmaceutical manufacturer and has a workforce of more then 250 highly skilled employees. The Maltese plant produces 50 million pills every week.

The Pharmaco Group has a strong position in EU markets and recently launched a range of pharmaceutical products on the Maltese market. The group operates in 14 countries, employs over 7,400 people and is one of the most valuable companies on the Icelandic Stock Exchange.

Dr Fjalar Kristjansson, who is the new managing director of Delta Research & Development Ltd, a subsidiary of Pharmaco Ltd, said that Iceland was already in the European Economic Area "where it has to adopt all EU rules and regulations without having an influence on what the rules are".

The prime minister said the expansion project of the company in Malta was "remarkable". He said that it was significant that the company already employed over 250 workers and that it was planning further expansion.

"It is extremely encouraging for me to see a company like this taking up the challenge and preparing itself for EU membership. I believe that Pharmamed is one of the companies we can refer to with courage because it is already working hard to reap the benefits of membership."