ADDIS ABABA, Ethiopia, Jan. 31 Rx Africa(Ethiopia) PLC, the wholly-owned generic drug manufacturing subsidiary of Rxfor Africa, Inc. (Pink Sheets: RXAF), is positioned to benefit greatly frompowerful new incentives for Ethiopia's local pharmaceutical industry put intoplace by the Federal Government of Ethiopia.
"We applaud the Ethiopian government for its visionary support of ourburgeoning industry. The health of Ethiopian citizens and economy, and thehealth of our own company, Rx Africa (Ethiopia) PLC, will benefit for years tocome," said Dr. Mulugetta Bezzabeh, Chairman of Rx for Africa, Inc.
Dr. Bezzabeh continued, "Over the next year, we will launch over 35 newproducts, many in high demand by the government for clinics and hospitals. Wewelcome the opportunity to bid for these contracts under the new policies thatgive locally manufactured pharmaceuticals first priority. Last year thegovernment purchased US $400 million of medications, and this amount isgrowing.
"Because local manufacturers will also receive up to ten years tax holidayfor special investments in pharmaceuticals, and no tax on locally producedpharmaceuticals for export, our ability to invest in capital projects isgreatly increased, enabling us to complete our upgrades sooner. We will alsobenefit by the Federal Government Investment Commission's new directive inwhich all technologies for manufacturing and for R&D activities will be exemptfrom paying duty and related taxes.
"To further promote the local industry, the government has placed a tariffranging from 15-30% on pharmaceutical imports and the Federal Drug Authorityof Ethiopia has issued new directives preventing the import of drugs that aresimilar to those that are produced in sufficient quantity in Ethiopia. TheAuthority has outright banned 120 Asian importing companies for supplyingcounterfeit or sub-standard medications. This is of enormous help to us, aswell. We will be more productive under these favorable conditions."
Forward Looking Statements
This press release contains certain forward looking statements within themeaning of Section 27A of the Securities Act of 1933, as amended, and Section21E of the Securities and Exchange Act of 1934, as amended, which are intendedto be covered by safe harbors created hereby. Such forward-looking statementsinvolve known and unknown risks and uncertainties, including the failure tocomplete successfully the development of new or enhanced products, theCompany's future capital needs, the lack of market demand for any new orenhanced products the Company may develop, any actions by the Company'spartners or others that may be adverse to the Company, the success ofcompetitive products, other economic factors affecting the Company and itsmarkets, seasonal changes, and other risks detailed from time to time in theCompany's filings with the U.S. Securities and Exchange Commission. The actualresults may differ materially from those contained in this press release. TheCompany disclaims any obligation to update any statements in this pressrelease.
SOURCE Rx for Africa, Inc.