The Ministry of Health has rejected Hanoi based Zuellig Pharma Vietnam’s proposal to set up a branch in the southern province of Dong Nai on the ground that such a plan only seeks to extend the drug firm’s import license.
In a document sent to the Ministry of Planning and Investment on May 06, the public health watchdog said the drug company wanted to form the branch to import and distribute drugs, not to produce pharmaceuticals.
The company has only until September 5 to import and distribute medicines in Vietnam as state in the investment license, the Health Ministry said, referring to Zuellig Pharma’s license allowing the company to distribute medicines in Vietnam in three years from September 05,2004.
Earlier, prime minister Phan Van Khai had ordered the company to shift to drug production after these three years. Otherwise, relevant state agencies will consider a termination of the validity of the investment license. The company is the only foreign company allowed to distribute drugs directly in Vietnam.
The Health Ministry charges that the company, which is the Vietnam based sole distributor for 27 foreign drug firms, has monopolised in the business and set distribution prices at high to very high levels.
[Intellasia legal news]