Local Production to be Favored
ADDIS ABABA, Ethiopia, Jan. 31 /PRNewswire-FirstCall/ -- Rx Africa (Ethiopia) PLC, the wholly-owned generic drug manufacturing subsidiary of Rx for Africa, Inc. (Pink Sheets: RXAF), is positioned to benefit greatly from powerful new incentives for Ethiopia's local pharmaceutical industry put into place by the Federal Government of Ethiopia.
"We applaud the Ethiopian government for its visionary support of our burgeoning industry. The health of Ethiopian citizens and economy, and the health of our own company, Rx Africa (Ethiopia) PLC, will benefit for years to come," said Dr. Mulugetta Bezzabeh, Chairman of Rx for Africa, Inc.
Dr. Bezzabeh continued, "Over the next year, we will launch over 35 new products, many in high demand by the government for clinics and hospitals. We welcome the opportunity to bid for these contracts under the new policies that give locally manufactured pharmaceuticals first priority. Last year the government purchased US $400 million of medications, and this amount is growing.
"Because local manufacturers will also receive up to ten years tax holiday for special investments in pharmaceuticals, and no tax on locally produced pharmaceuticals for export, our ability to invest in capital projects is greatly increased, enabling us to complete our upgrades sooner. We will also benefit by the Federal Government Investment Commission's new directive in which all technologies for manufacturing and for R&D activities will be exempt from paying duty and related taxes.
"To further promote the local industry, the government has placed a tariff ranging from 15-30% on pharmaceutical imports and the Federal Drug Authority of Ethiopia has issued new directives preventing the import of drugs that are similar to those that are produced in sufficient quantity in Ethiopia. The Authority has outright banned 120 Asian importing companies for supplying counterfeit or sub-standard medications. This is of enormous help to us, as well. We will be more productive under these favorable conditions."
Forward Looking Statements
This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward-looking statements involve known and unknown risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners or others that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
|SOURCE Rx for Africa, Inc.|
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