Omacx Healthcare optimistic of 30% growth

• Denies allegations of pilfering Oncaspar

​

Omacx Consultant Miran Fernando(left) and Director Nuwan Fonseka at the press conference - Pic by Lasantha Kumara

By Charumini de Silva

Despite a temporary setback, Omacx Healthcare Ltd. was confident of posting 25%-30% growth by the end of this year, a senior official said.

Citing the 46%-52% y-o-y growth trajectory the company has recorded since its inception, Omacx Healthcare Ltd. CEO Mevan Wijesinghe said that he was hopeful that the company would post a growth of 25%-30% by the end of the year.

“With the introduction of the two new molecules to the industry, we have hopes of doing well with these two products. This is one area where we hope to make up lost ground and where the company will continue its march forward,” Wijesinghe said.

He added that for first time in South East Asia, Omacx had revolutionised the therapeutic care segment by launching an intravenous medicine for the treatment and cure of advanced diabetic foot ulcers.

The company held a special media conference yesterday at the Galadari Hotel to discuss and highlight key issues relating to oncology drugs and the injustice caused by negative comments regarding their institute.

Wijesinghe was deeply concerned over sustained attempts by certain elements with vested interests to tarnish the image of the company through baseless allegations.

He asserted that Omacx was one of the few companies in Sri Lanka which marketed innovative niche molecules in a fiercely competitive pharmaceutical industry. It was against this backdrop that Omacx was linked to the alleged pilfering of oncology drug Oncaspar from the Maharagama National Cancer Institute (NCI) and its resale to the Medical Supplies Division (MSD) in September 2013.

“We kept a thin margin to market this product solely on the basis of serving leukaemia patients on a humanitarian basis (Omacx marketed Oncaspar for Rs. 227,000 against a competitor rate of Rs. 325,000). This type of a margin should not be incurred. I would say it was looting the money of the Health Ministry,” he said.

Elaborating on this issue, Omacx Director Nuwan Fonseka said the temporary suspension of the company on 13 November 2013 had a devastating effect on its business as not only Oncaspar but its entire portfolio of drugs remained suspended.

While categorically denying the allegations, the company pleaded with the Health Ministry for an opportunity to defend itself. He said a case was filed with the Court of Appeal challenging the company’s suspension and the allegations that the supplier pilfered and resold Oncaspar were found to be absolutely baseless. 

“It was obvious because we bid on realistic rates and retained a reasonable margin had become a thorn in the flesh for some tenders,” Fonseka added.

Omacx Consultant Miran Fernando said that due to this issue and adverse comments the company incurred millions in losses.

“Even after operating for one whole year we will not be able to regain our credibility and the goodwill of suppliers (lost five good manufactures) and staff. Without any operations for one entire year we cannot expect them to be around. However, the company paid salaries and bonuses from its personal assets and capital. We had to draw that to keep our family of 15-20 people intact,” Fernando said.

He further asserted that it was evident that the objective of tarnishing the company’s image through unsubstantiated accusations was to “blacklist” the company and effectively bar it from the Health Ministry’s tender process for oncology drugs.

Despite all these allegations, Fernando said that the company’s management was quite confident that they could come back stronger and continue their march forward.