Japan’s Mebio and Nawaloka Holdings incorporate JV

As a follow up to their late last year’s announcement, Japan’s Mebiopharm Co Ltd., and Nawaloka Holdings Ltd., (NHL) have incorporate the joint venture company last week under the name and style N&M Venture Private Ltd.

The two firms’ 5o:50 joint venture’s purpose is to involve a healthcare business in Sri Lanka. NHL owns controlling interest in Nawaloka Hospitals Plc. Mebiopharma is a bio-venture company based in Japan.

N & M Limited makes the organisation which can perform a human clinical development of medical drugs based on ICH (International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use) guidelines which is a global standard, and provides, offers, distributes, brings, and imports medical drugs of a world level (ethical drug, general drug and OTC (Over The Counter) drug), medical device and equipment, and a consumer health care related product in the healthcare field which is still insufficient and will be expected remarkable expanded market from now on, in Sri Lanka.  



N&M Limited will consolidate an organisation which can improve a basic research and carry out research and development for producing medical drugs, through cooperation or licensing of technology by MEBIO, and hospital (Nawaloka Hospitals PLC). Nawaloka Hospital as a core which NHL holds and is a maximum private hospital which has listed.

As per the articles, N&M Limited will do the following three businesses mainly; a) N&M Limited do first-time SMO (Site Management Organisation services) business in Sri Lanka, and it improves a clinical study system and build a system to conduct clinical studies of the drugs under the global standard in Sri Lanka; b) N&M Limited do import business of drugs, quasi drugs, medical device and equipment, and consumer healthcare products etc. that are approved in the world but not approved or not used commonly in Sri Lanka cooperating with group corporations of NAWALOKA which have experiences and licenses of import-export business and have a distribution network and c) N&M Limited build an organisation which is able to carry out drug development business that contributes to a development of life science as a nation by being transferred MEBIO’s platform technology and know-how and by conducting basic research of development for pharmaceuticals in Sri Lanka.

The sales in this business enterprise aim at 170 million yen (around Rs. 250 million) of the first fiscal year (real operating first year, 2013/3) and aim at 2,500 million yen of the fifth fiscal year (2018/3), a joint announcement said.

N& M Ltd’s Chairman will be Mebio’s CEO Tadashi Fujisawa whilst the Managing Director will be

 Harshith Dharmadasa, Director of Nawaloka.

The joint venture was first announced in December last year at the Tokyo Stock Exchange (TSE) on the sidelines of first ever Investment Seminar cum road show in Tokyo organised by New World Securities Ltd.,  Mebio is listed on the Alternative Investment Market of the TSE.

After 30 years of civil war in 2009, Sri Lanka has achieved GDP real growth rate 8% in 2010. In addition, its stock exchange market has grown with the largest growth rate 73.99%. Sri Lanka has continued to grow strongly even comparing with other emerging countries in recent years. Sales of pharmaceuticals in Sri Lanka are expected to increase from Rs. 38.97 billion in 2009 to Rs. 43.54 billion in 2010.

Nawaloka is a conglomerate in Sri Lanka and has 15 companies such as construction, industries, trading and healthcare. Nawaloka Hospital is the biggest private hospital group with 400 beds in Sri Lanka. Nawaloka Hospital was awarded ISO9001-2008 in 2011 and successfully conducted a liver-doner liver transplant and lung transplant, first in Sri Lanka; the proof of high medical skills. Moreover, Nawaloka Hospital is listed on the main board of Colombo Stock Exchange with the market capitalisation of Rs. 5.6 billion.