Q: Tell us about Emerchemie NB’s journey in the pharmaceutical industry since its inception 25 years ago…

A: Emerchemie’s establishment was serendipitous rather than opportunistic. Our journey has been deeply rewarding, driven by a people-oriented and process driven approach. We prioritise both rules and relationships, recognising that fostering a sense of ownership among employees is key to our success.

Emerchemie was founded on principles of mutual respect and understanding, which underpin our success. In melding the high-pressure American sales model from my Pfizer days with the meticulousness of German management at Hoechst, I’ve forged a unique approach.

Our belief in our industry’s ability to add value to the lives of our people instead of merely prolonging life is reflected in our motto of ‘helping add life to years,’ and is the keystone in the ethos of the company.

I firmly believe that employees are key and by prioritising their needs, we fortify customer relationships. This philosophy permeates our company culture, making it a living, breathing entity rather than a rigid set of rules with exceptional productivity.

Our achievements speak volumes. Despite being a relatively young player in the industry, within a decade, we were among the top three in the pharmaceutical industry. Today, our market share stands at an impressive 12 percent and we can count 18 of our partner companies among the top 100 in the market.

Venturing into manufacturing, we’ve secured patents and cater to critical government healthcare needs. Even amid challenges like price competition, we’ve sustained growth – a testament to our unwavering commitment to quality.

Q: How has the company’s vision evolved over the past quarter-century? And what are the significant milestones and achievements of the last 25 years?

A: Our vision is clear – to provide effective pharmaceutical products at affordable prices. This vision is deeply rooted in our mission, driving us towards sustainable growth while ensuring the satisfaction of our employees.

Being honoured with awards at the Geneva International Exhibition of Inventions and a Presidential Award in Sri Lanka for our patented processes further validates our commitment to excellence.

However, beyond these accolades, one of our proudest achievements lies in our workplace culture. Our employees willingly come to work not merely for monetary gain but also for the positive environment we foster within the company.

Perhaps the most telling testament to our success is the admiration we receive from our stakeholders. Through surveys and feedback, it’s evident that we are an admired company in the marketplace, and this sentiment comes from customers, doctors and chemists alike. From the initial interaction with the doctors through the retailers to finally our patients, our commitment remains unwavering.

We face many risks including in the transportation, storage and packaging of pharmaceuticals especially when maintaining cold storage requirements. We prioritise adherence to strict standards and avoid shortcuts at all costs.

For instance, we allocate additional pharmaceutical units to ensure supply availability, resulting in a monthly write-off of around Rs. 5 million out of our sales. Such excess is necessary due to unpredictable demand fluctuations and expiration dates.

While some companies might resort to mitigating such losses through various means, we ensure accountability, and utilise advanced systems for inventory management and accounting. However, this monthly loss remains an unavoidable occupational hazard.

To manage these returns effectively, we request chemists to return goods nearing expiration within two months. Disposing of expired pharmaceuticals requires special licences and proper procedures, adding to the operational complexity and cost.

Contrary to popular belief, the pharmaceutical industry operates on thin margins due to substantial research and development costs. It typically takes extensive research, involving testing hundreds of molecules, before a single product reaches the market. Research costs are astronomical, often exceeding manufacturing expenses by a substantial margin.

Moreover, the pharmaceutical industry attracts top talent globally, from scientists to support staff. While this talent comes at a premium, it reflects our commitment to ensuring product safety and efficacy. Our staff – including doctors, lawyers, marketers and accountants – undergo rigorous training and receive competitive compensation, reflecting the immense responsibility they carry.

Ultimately, our guiding principle is simple: would we be willing to use the medications ourselves? This question underscores our unwavering commitment to quality and safety in every aspect of our operations.

Q: Of the diverse range of products in your portfolio, which are you most proud of and why?

A: Our product portfolio includes a wide range of essential medications vital for patients’ wellbeing. From anti-asthma products such as dry powder inhalation, psychotropics, antibiotics, insulins to oncological drugs for cancer patients, each plays a crucial role in addressing serious health conditions.

It’s challenging to prioritise one over the other as they all serve critical needs within society, contributing to a better quality of life for individuals.

Our commitment extends to making these essential medications accessible at affordable prices. However, affordability is often tied to factors like the exchange rate and government price controls that are beyond our control.

Balancing the need to provide affordable healthcare with financial sustainability and shareholder expectations presents a complex landscape to navigate. Over the past 25 years, Emerchemie has consistently demonstrated resilience and growth, solidifying its position as a leader in the industry.

Despite the challenges, our foundation remains robust, and we are poised to continue delivering value to both patients and shareholders alike.

Q: How does the company ensure the high quality and safety of its products?

A: All medicines in the country are regulated by the National Medicines Regulatory Authority (NMRA). As such, every product has to be registered by this authority through a rigorous and time-consuming process. Only then is a registration certificate issued for the product to be marketed in Sri Lanka.

In addition, the entire storage and transportation process too is regulated by this authority. In our case, the manufacturers whose products we market have their own, often higher standards that they expect us to maintain.

Our warehouse for instance, is not only inspected annually by the NMRA but is also audited by our prestigious foreign manufacturers. This entails keeping the entire storage and transportation process up to the standards expected by multinationals. That is why we have obtained ISO and WHO GSP (good storage practices) qualifications for our warehouse.

It’s crucial to recognise that pharmaceuticals are not simply about marketing – they also have to ensure sustainability. Unfortunately, some individuals prioritise profit over responsibility, leading them to engage in unethical practices. This is particularly concerning because the average consumer lacks sufficient knowledge about medicines and relies on professionals for guidance.

In this environment, we try to set ourselves apart by making our patients’ wellbeing our highest priority.

Q: What strategies have you implemented to ensure efficient sales and distribution across the country?

A: We operate as a process driven company with meticulous adherence to standard operating procedures (SOPs). Every aspect of our operations, from the moment goods arrive to their transportation to warehouses, maintenance of the cold chain, packaging, pricing, repackaging for distribution, allocation and beyond, is governed by well-defined procedures.

Our SOPs are meticulously charted out, ensuring that each step is carefully executed to maintain quality, efficiency and compliance. Regular audits are conducted to verify that these processes are consistently followed.

Due to our growth, we have had to employ technology to streamline these processes, with enterprise resource planning software and point of sale real-time updating software being employed for these purposes.

Q: Could you discuss the importance of ethical business practices in the pharmaceutical industry?

A: Ethics should permeate every aspect of one’s life and it should be an inherent part of one’s lifestyle. Ethical behaviour revolves around the principle of doing no harm to anyone and striving to perform tasks in the most efficient and effective manner.

It’s not merely a recommendation but an absolute necessity, not only for Emerchemie but for all businesses, to adhere to ethical practices. The absence of ethics has led to scandals and malpractice, which is a grave concern.

While it may sometimes be challenging to uphold these standards, especially in complex business environments, they are non-negotiable, particularly in pharmaceuticals. Ethical considerations are paramount because the products we manufacture and distribute directly impact individuals’ health and wellbeing.

This is where two key aspects of pharmaceutical marketing come into effect. One is ‘pharmacovigilance’ where instead of selling a product and forgetting about it, we maintain vigilance for serious adverse effects of these products.

The other is compliance where business is conducted within a defined ethical framework, under the law of the land and guidance of the manufacturer.

Q: What future goals and aspirations does Emerchemie have?

A: Currently, we command a 12 percent market share, a testament to our approach to business development and our underlying business ethos. For us, growth isn’t simply about financial metrics – it’s about cultivating a workforce equipped to steer the company toward greater success.

Looking ahead, my vision is to cultivate a new generation of leaders within the organisation who are not only adept at maintaining our current standards but also capable of adapting to evolving sociopolitical and socioeconomic landscapes by fostering a balanced mindset.

It entails embracing change while upholding our core values and practices. As I look to the future, I see the present crop of talent within our ranks as the future leaders who will propel the company to even greater heights. They will inherit not only the responsibilities but also the opportunities to innovate and excel.

Through a shared commitment to our principles and a readiness to adapt, I am confident that the company will thrive under their leadership.

– Compiled by Tamara Rebeira

 

COMPANY DETAILS

Telephone: 2675005 | Email: info@emerchemie.lk | Website: www.emerchemie.lk