New Zealand's largest pharmaceuticals manufacturer, Douglas Pharmaceuticals, will remain a New Zealand company after rejecting takeover bids.
The company had been slated as a takeover target for a major Canadian pharma company earlier this year, according to Stuff.co.nz.
The family owned Douglas Pharmaceuticals released an Information Memorandum to potential acquirers; however after reviewing the bids its owner, Graeme Douglas, decided upon keeping the company private.
"Along with my board, I remain committed and passionate about the future of our New Zealand-manufactured pharmaceuticals enjoying ever-increasing success in the world markets," Douglas said.
The company will instead focus on boosting its exports to Asia.
Australian pharmaceutical manufacturing looks set for substantial growth to meet the increasing demand of Asian healthcare products.
The industry recently witnessed a rapid boom in the pharmaceutical export manufacturing sector with exports increasing fivefold by 2020.
Australia’s pharmaceutical sector has been facing constant odds with the federal Health Department, waging a constant war to bring down the prices it pays for the drugs under the Pharmaceutical Benefits Scheme.
The industry also suffers from the problem of high wage and dollar environment that poses a constant trouble to the manufactures.
However in 2011-2012 there has been a significant rise in the exports of pharmaceutical and medicinal products. Pharmaceuticals are now firmly established as the No. 1 “substantially transformed” manufacturing export with $4 billion in exports, beating the car industry in 2011-12 with $2.8 billion in exports and the wine sector with $2 billion.
Old factories that were to be closed down in Australia are now being reopened or even expanded to supply Asia’s voracious appetite for drugs.