Multiple facilitiesABS not having its finances ready at the...

Multiple facilities

ABS not having its finances ready at the right time looks as if it might have been a real bonus for NSP. It means that the Singapore facility can be set up with several investment relationships previously made and who will now not be disappointed in getting in on the ground floor. Besides the general clear market demand in SE Asia, PrIME (Sing) will have a definite first customer lined up in ABS for supply of CUP source plasma and for sales of processed products. There is no doubt about the availability of plasma from other country sources but it is commercially more secure to know that the region of servicing will be widespread. The Singapore government support previously offered has not wavered (includes a S$1M soft loan).

The major bonus is that the second PrIME plant, in India, has a greater certainty of proceeding. ABS is still in process of firmly establishing itself, generating Indian government contacts, and needs a little extra time to arrange its finances. It was stated at the June meeting that the next PrIME separation plant will be in India and should break ground within 24 months. Well before that time it will be demonstrated that the Singapore facility is a goer, even if the formal trial is not yet complete. This should give the ABS financier greater confidence that the PrIME process can do what it says it can.

Another point I rather like about the present two facility arrangement is that NSP will very likely remain the controlling manager, although being answerable to the other stake holders. I was somewhat fearful earlier that with ABS we might have to dance to their tune right from the outset without much choice of direction.

Similar things could be said about Unilab in the Philippines who would probably also prefer to see a demonstration before making a major commitment. However, they have signed a LoI and appear to operate on a scale large enough to support a foray into plasma production. They should commence with a takeoff agreement from the Singapore facility.

[From a variety of sources] Unilab is the largest and leading pharmaceutical company by far in the Philippines with a market share of ~25%. It manufactures and markets over 300 prescription and consumer brands and has affiliates in 10 countries in the Asia-Pacific region. The company was founded in 1945.

Unilab total sales in 2009 were PHP27 B (AUD$612 M) which is three times the sales of the next largest , GlaxoSmithKline, and Pfizer. This indicates that they could probably afford to take a 50% stake in a (third) PrIME plant in the Philippines. That is looking ahead a few years.

[From, “Profile of the Philippine Pharmaceutical Sector, 2011”, p.55 in, http://dirp4.pids.gov.ph/ris/dps/pidsdps1111.pdf ]

Juke