POSCO Int'l's pharmaceutical biz in Sudan attains No. 2 market ranking

A pharmaceutical company in Sudan set up by South Korea's POSCO International to find business opportunities in and make social contributions to the African country has shown brisk growth.

POSCO International on Thursday said General Medicines Company (GMC) last year posted 30.1 billion won ($23.59 million) in sales and 10.3 billion won in operating profit. Over the past three years, the Sudan-based business saw average sales growth of 36% per year and annual operating profit of 42%.

Founded in 1988 as a joint venture between POSCO International and Shin Poong Pharm, which developed a cure for an endemic disease in Sudan, GMC makes and distributes over 100 types of medicinal products in the Northeast African country like capsules, tablets, ointment and syrup.

In 1994, the company launched the bloodsucking insect repellent Distoside in Sudan, which was suffering from distoma infection at the time. The repellent has been an essential treatment in that country over the past 30 years.

GMC has since expanded its product lineup to antibiotics and treatment of malaria, diabetes and high blood pressure, emerging as the No. 2 pharmaceutical company on the Sudanese market and aiming to claim the top spot within 10 years.

In March last year, the company secured a site of 42,900 square meters to build a new factory for generic drugs and modernize its first plant. It is also mulling putting up an annex to produce health supplements.

GMC is also conducting social contribution projects like providing scholarships to the University of Khartoum's Faculty (College) of Pharmacy and funds to renovate hospital facilities.

In addition to pharmaceuticals, POSCO International will venture into the green and white bio sectors, two industries that use plants and microorganisms, by making equity investments in startups.

The corporation has companies and branches in seven African countries including Sudan, Nigeria and Algeria. Using these affiliates as bases, it will explore business opportunities in resource development, food and chemistry. 

Write to Ik-Hwan Kim at lovepen@hankyung.com