Chief executive officer’s review
Since assuming our current name in mid-006 to reflect being part of the CCM Group, the Company has gained greater recognition through the Group identity and has been given an excellent rating from preferred suppliers. The integration of people and systems with those of the Group proceeded smoothly and, for the first time, we adopted CCM’s Key Performance Indicators for its pharmaceutical business for the year 007. These included:· Growing our share of the domestic market, especially
· Increasing our business to the government sector
· Launching new innovative products.
For the year under review, we have achieved an increase of about 8% in our production output and approximately 0% in our sales. We are in line with industry growth of 8% to 0%. Growing the business Since 005, the Malaysian Government has been using methadone in Drug Substitution Therapy [DST] programme as part of its harm reduction therapy for heroin addicts. Methadone has been used globally for 40 years with a high level of efficacy and the Malaysian Government was able to achieve a 90% success rate in its pilot project. Administered orally, it has minimal side effects and reduces withdrawal symptoms. This prompted the Government to place 5,000 more heroin addicts under the Methadone DST programme in 007.
CCM Duopharma had won the tender to supply methadone to the Ministry of Health [MOH] in 006. With the Government extending its programme, we will continue to supply to the Government until 009.
09.05.2007 CCM Duopharma participates in Group’s innovation programme Chemical Company of Malaysia Berhad [CCM] launched its Year of Innovation at the office of CCM Duopharma Biotech Berhad. The event was officiated by the Group Managing Director, Dato’ Dr Mohd Hashim Tajudin, and was attended by managers from various subsidiaries and regional offices.
The 007 Year of Innovation is aimed at inculcating a quality-driven and innovative culture and workforce within the Group. This is in line with the aspirations of CCM Duopharma to remain competitive and become a leader in the industry.
Innovation plays an important role in a company’s quantum leap in business to gain higher growth. According to Dato’ Dr Mohd Hashim, the innovation culture in CCM must be across the board. Innovation must be looked at and addressed from all angles on products, processes as well as services provided to customers internally and externally. The Group also launched an Employee Innovative Suggestion Scheme [EISS] to encourage and promote outside the box and innovative thinking and ideas among all employees.
The DST programme helps heroin addicts to control
A Customer Awareness Team [CAT] was set up in 007
their addiction and lead a normal life, enabling them to
to create customer awareness of our OTC products
re-enter society in a productive manner. To familiarise
through health-related activities. CAT also served to
medical practitioners with the programme and dispel
strengthen our on-going advertising and promotional
notions of its efficacy, we sponsored the Methadone
campaign as well as complement our sales and marketing
Maintenance Therapy Workshops organised by Pusat
initiatives. Activities that included health screenings and
Perubatan Universiti Malaya. Endorsed by the MOH,
product samplings were held at more than 9 chain and
the workshops were held on 3 May and November
independent pharmacies around the Klang Valley. Visits
during the year under review. The programme also drew
were also made to a number of hospitals.
attendees from non-governmental organisations.
Already exporting our products to about 0 countries,
The government sector is an important market for us.
our strong presence in the ASEAN region has helped us
We were awarded a contract to supply 63 items to the
to post double-digit growth in export sales for the year
MOH for the period 007 to 009. This tender award,
under review. We, through the CCM Group, maintain
worth approximately RM30 million a year, is in addition
sales offices in Bangkok, Ho Chi Minh City, Jakarta,
to one that we had won in 006 to supply SLN 30 and
Manila and Singapore, and have appointed agents in
SLN 40 tablets to the Ministry. We are the only company
in Malaysia permitted by the patent holder to produce these 3-in- anti-retroviral drugs that are used to treat
About 0% of our business is attributable to exports,
a ratio that we plan to increase by penetrating new markets in the Middle East and Africa as well as exploring
While the main driver of our business is the small volume
opportunities in Central Europe, Central Asia and the
injectables, we continue to enhance our range of other
South Pacific. Towards this end, we participated in trade
products. In 007, two new ethical products, i.e. Precose
exhibitions in Kazakhstan, Vietnam and Indonesia.We also
and Nordipine, were introduced; these are products that
took part in a trade show in USA and an international
require prescription by medical doctors. Two new OTC
trade show in Malaysia. At the same time, we are also
products were also launched during the year – Legarin,
tapping into the CCM Group’s distribution network to
a herbal remedy that can help improve the liver’s
ability to detoxify and burn fat in the body, and Donna Forte 500mg, an extension of Donna 50mg that was
We are committed towards expanding our range with
developed to help reduce discomfort and pain among
new innovative products, as reflected in our target to
invest an approximately 3% of revenue annually towards research and development [R&D]. As part of the CCM
We will also see an addition of about 30 new products to
Group, we are leveraging on the R&D services provided
our range as a result of the acquisition of the assets and
by Innovax Sdn Bhd, a subsidiary of Chemical Company
brands of Malayan Pharmaceutical by the CCM Group.
of Malaysia Berhad. Its cutting-edge facilities give us a
Products such as Chewies, Cosmos and Milidon will be
competitive advantage, providing us with a pipeline of
ethical and OTC products that will address new health concerns. We have identified an increasing demand for haemodialysis and irrigation solutions and will expand our resources towards helping those affected in managing these conditions. Improving quality
Time and again, we have contributed supplies of our
Our membership in the CCM Group has brought us under
products to help certain sectors of the community. During
the umbrella of the Group’s Total Quality Management
the year under review, we pledged a year’s supply of
programme. Quality Improvement Teams [QITs] were
Donna Forte 500mg, a product to alleviate the symptoms
formed during the year under review followed by the
of osteoarthritis, and other related products to the aged
launch of the QIT Awareness Campaign on March 007.
residents of Penjagaan Warga Tua Sri Tanjung, Kuang, Selangor. This is not a one-off affair as we are in constant
Participating in the CCM Group QIT Convention for the
communication with the retirement home to help it in its
first time on 6 September 007, our teams succeeded
in taking home three of the five Special Category awards
– Most Innovative Team, Best Use of QCC Tools and
Developing our human capital
Techniques, and Best Presentation. In addition, we won
Our emphasis on quality goes hand-in-hand with our
the Gold in the Services as well as the Marketing and
ongoing commitment to human capital development.
Sales categories, and the Silver in the Manufacturing
This has been further strengthened by the harmonisation
of our human resource policies and procedures with the CCM Group. Our compensation and benefits are being
We have also won recognition from outside the Group
aligned with that of the Group, particularly in regard to
for the quality and efficacy of our products. In the Guardian
its performance-oriented philosophy, so that our vision,
Choice Customer Awards for 007, we were the winner
mission and strategic plans reflect that of the Group’s
in the Joint Relief category. Encouraged by all these
achievements, we plan to leapfrog our quality drive
Performance-based tools, such as the Balanced Score Card and Key Performance Indicators, are being implemented
Helping the community
to measure competencies and performance. Succession
Being part of a conglomerate such as CCM has created
planning is being introduced at top and middle
greater awareness of our responsibilities as a corporate
management levels to ensure continuity and provide
citizen. In December 006, during the launch of Diamelon,
a definite career ladder to retain our talents. The
a product that is able to help control blood glucose levels,
effectiveness of such initiatives, which require critical
we had made a pledge to donate 50 sen to the National
statistics and accurate data relating to human resource,
Diabetes Institute [NADI] from the proceeds of the sale of
is ensured by further improvements in our human
every bottle of the product. During that launch, we had
resource information system and processes.
donated RM5,000 to NADI for the Institute’s educational programmes. On 4 November 007, we carried through
To promote harmonious employer-employee relations
with our promise, donating an additional amount of
and minimise disputes, we organised industrial relations
RM7,000 to the Institute at a presentation ceremony
training, provided effective disciplining and counselling
held in conjunction with ‘World Diabetes Day’.
processes, and introduced grievance-handling procedures.
Our support of NADI represents the first of several initiatives in our Corporate Social Responsibility
The knowledge and skills development of our people
programme. We are committed towards promoting
remained high on our priority list during the year under
greater public awareness on diabetes prevention. NADI
review, with staff at all levels undergoing training in both
was selected as the beneficiary of our programme to
technical areas and soft skills. Developmental activities
recognise and appreciate its efforts in educating the
were undertaken to prepare them for the operational,
public on diabetes. In further support of the Institute’s
technical and individual requirements to support our
work, we have also provided a link to its website via our
expansion and growth. The Personal Effectiveness
own corporate website. This should help to facilitate
Programme was held for management staff to help
access to information for people living with diabetes and
them in moving towards the Group’s organisational
culture. While most training and development is now held at the Group level, more specific training in Good Manufacturing Practices as prescribed by the MOH is organised at the manufacturing floor.
16.05.2007 At the K IHE 2007 Exhibition
CCM Duoph arma Biotec h Berhad partici pated in
The exhibition provided CCM Duopharma a
one of Cent ral Asia’s big gest internatio
platform to establish business contacts into new
exhibition, t he Kazakhst an Internationa l Healthcar
e markets, gather market information and study
nforce the competitors’ activities. More importantly, the
exhibition gave the Company an opportunity to
showcase its products, which included a wide range
of small volume injectables and over-the-counter
by 30% incr ease from th e previous year.
Looking ahead We will continue to face challenges brought about by rising raw material costs and competitive imports. Our main chal enge wil be in developing a strong management team with a strategic outlook, one that is also capable of revamping the organisation in accordance with the Government-linked Companies Transformation Programme, which wil bring us on par with the multinationals.
Our immediate focus will be on expanding our facilities, not only with additional manufacturing and warehousing facilities but also with better staff amenities, at our plant in Klang, Selangor. We will be expanding our packing line for small volume injectables to improve output. In terms of our market, we succeeded in obtaining our Halal certification for a range of products in early January 008, which will pave the way for inroads into the Middle East.
For the medium-term, we will be looking at further incorporating our operations into the Group’s divisional strategy by rationalising our product range. Having completed our second year within the CCM Group, the integration work is almost done and the emphasis would now be on gearing up our business. We operate in a resilient industry that caters to the health and well-being of the general public. As such, we expect our future prospects to continue being robust.
Leonard Ariff bin Abdul Shatar Chief Executive Officer
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