Management of three pharmaceutical companies, Dannex, Aryton Drugs and Starwin Limited has told Citi Business News that the merger of the three companies will be completed in July this year.
The merger processes of the three companies began about two years ago.
When completed, the new company will be the biggest pharmaceutical Company in the country.
Some few years ago, Dannex Limited acquired majority shares in Ayrton Drugs Company Limited and Starwin Ghana Limited.
All established in the 1980s, Dannex, Ayrton Drugs Limited and Starwin Ghana are able to produce pharmaceutical goods to meet more than a quarter of local demand.
Some of their products include tablets and syrups. The merger will allow the yet to be named company also listed on the Ghana Stock Exchange.
Meanwhile, the company is exploring various mode of funding including Government support to complete its new and upgraded facility which when completed will meet global standard.
“The idea behind it is to develop economics of scale so that we can optimize the business,” Daniel Kissi, Chief Executive of Dannex, Ayton Drugs and Starwin told Citi Business News after Deputy Trade Minister, Robert Ahomka Lindsey toured the company’s current facility
He is optimistic the merger will enable them increase production and afford the company the opportunity to export to other countries.
Meanwhile, government has selected the Pharmaceutical industry as one of the key sectors to be used as a structural base for development aside, cocoa, gold and oil.
Speaking to Citi News after the tour, Mr. Ahomka Lindsey assured of government’s support to the pharmaceutical industry.
“There are various interventions government is using to support our industries. As the largest local pharmaceutical manufacturing company, it is critical that we help the group expand. Because the pharmaceutical industry is one of what we call the strategic anchor industry we are supporting them with some stimulus package.”
He disclosed that government has disbursed over Ghc200 million to support distressed companies in different sectors.
On his part, Group Chair of Dannex Group, Nik Amarteifio explained that the company has the approval of all shareholders for the merger.
“It is work in progress but basically everything has been signed. Apart from the merger, we have to launch the brand and make sure it stands on its own,” he explained.
The upgraded facility is set to be completed in 2020.
citibusiness
