New breast-cancer drug gives hope to Cyprus industry

Remedica, one of the industrial success stories of Cyprus and among the island’s biggest exporters, has launched a new breast cancer drug that is expected to boost worldwide sales by 20-25% next year.
The Limassol-based pharmaceutical company has already clinched a public contract worth about EUR 8-10 mln a year for the supply to state hospitals of the new Aremed for the treatment of advanced breast cancer among post-menopausal women.
The Cyprus government underwrites the cost of all medicines for cancer patients and this two-year contract is expected to save the taxpayer about 35% off alternative breast cancer drugs using tamoxifene.
The new drug, developed in cooperation with Pharmaceutical Oriented Services (PharOS) of Greece, contains anastrozole that claims a 13% longer survival period for patients, lowers the risk of spread to the opposite breast by 53% and reduces the risk of recurrence by 16%.
Aremed underwent extensive clinical trials in Canada and is ready for export to eastern Europe and the rest of the world, ensuring a steady rise in earnings for the company that recorded about EUR 50 mln in exports last year. Remedica maintains exclusive export rights for at least five years and the new drug will be available in western Europe after patents there expire in 2010. Efforts are also underway to export to China, even though prospects there are considered a ‘long shot’ due to Beijing’s protectionist policies.
The company plans to build a fifth plant in Limassol this year solely for the manufacture of cancer-related drugs, as Aremed is added to the list of 450 medicines and over-the-counter pharmaceutical products. The building of the new plant will also create jobs as a slump in property sales has slowed construction resulting in layoffs by home builders.
Remedica offers a glimmer of hope to the local economy as well, as it is best suited to overcome the global financial crisis since the health sector is relatively immune from the meltdown of markets.
The company currently employs 400 people in Cyprus and has an international sales force of a further 1,000 representatives around the world. Together, they account for the lion’s share of the Cyprus pharmaceutical industry, estimated to be worth EUR 120 mln.
“A quarter of our staff are scientists and engineers, all with higher education, who have helped us export to 100 countries, thus reducing the risk,” said the company’s chief executive, Charalambos Pattichis.
“We hope to introduce a few more new products over the next few years that will make the company less vulnerable to global market fluctuations,” Pattichis told journalists at a news briefing.
However, the success story that started with the transformation of a 1960s chemicals company to a pharmaceutical giant in 1980 by its founder, Takis Pattichis, was not easy as the company relied on own funds to ensure its growth in a competitive market where multinationals maintained a tight grip.
“We are one of the biggest contributors to the government of Cyprus through our taxes, social insurance payments and other funding, yet we remain silent ambassadors reaching places where Cyprus is not even known as a place name,” said Charalambos Pattichis, adding that inconsistent state policies on pricing prevent local pharmaceutical companies from enjoying a healthy expansion.
“The latest decision that prevents any price rise on all products under five euros will make cheap medicines disappear. On the other hand, any medicine over that benchmark can see a price rise of 10%, no matter if it sells for 10 euros or 1,000 euros,” Pattichis concluded.
The company boasts solid financials and reinvests its profits back into research and development of new products and markets. It also has an active corporate social responsibility programme that includes the creation of a blood bank and the donation of vital medicines to international organisations, charities and appeals.