Open Letter to Customers

Message from The General Director of STADA-VN J.V. Ltd.

Re: Nature of matters related to production of the finished drugs which have addictive ingredients, recently posted on mass media

Recently, STADA-VN got served with the decision of 10/C47 (P6) dated 14/12/2011 of the Ministry of Police to prosecute the criminal violations of regulations on management and use of addictives occurred at the company.

To help staff members understand the true nature of the problem, believe in corporate ethics and laws compliance of our company, to avoid undue panic and worry, I would like to explain the situation as follows:

Before the devastating stagnation in the state management of pharmaceuticals, on 04/07/2011, I myself, along with 06 other Directors General of pharmaceutical companies in the South had many petitions on the negative deeds of Mr. Truong Quoc Cuong, General Director of the Vietnam Drug Administration. Among the contents, the most important one is about granting import licenses for more than 7,000 kg of Pseudoephedrine precursor for Pharma BV Company within 07 months with many shadowy details.

The petition was sent to all the leaders in the health sector and other relevant agencies. Up to now, there were so many teams come to verify the contents of petitions and we have supplied a lot of evidence on Mr. Cuong’s wrongdoings and violations of laws, but so far not received any response from any agencies as well as the Ministry of Health.

Following the petition, Ministry of Health has sent inspection teams to inspect the import and export, manufacturing, trading, distribution and use of addictive substance, psychotropic substances at our company. Among the team, there is representative of C47 (Narcotics Investigation Police) from the Ministry of Police The team concluded the company is operating incompliance with laws on import and production in all stages. As for exports, the team recorded STADA-VN exported medicines with following quantities: 500 boxes of Partamol F/100 tabs (containing Paracetamol 500mg, Pseudoephedrine 30 mg and Chlorpheniramine 2mg), 240 boxes of Partamol Codein/100 tabs (containing Paracetamol 500mg + codein 30mg) and 210 syrup bottles Partamol for Foreign legal entities without obtaining export licenses by the Ministry of Health. The exports are done through economic contracts and Customs procedures.

On 02/11/2011, the Health Inspectors requested STADA-VN Board of Directors to a meeting in Hanoi and proposed to impose administrative penalties of 20 million VND. The company had petitioned the Health Ministry to reconsider the sanctions because this is the first-time violation due to failure in the updating state management documents.

On 27/10/2011, Government Inspectors from Anti-Corruption department continued to inspect STADA-VN on the pretext of inspection on state management of pharmaceutical affairs of the Ministry Health (?!) and some content related to the company’s petition letters. However, the core contents of the Anti-Corruption Division was to conduct inspection of precursors with the same agenda with the above-mentioned the Health Ministry had done before even though there was only one inspector from the Ministry of Health who is a professional in Medicine. This team had made the same conclusion as the team from Ministry of Health on the export of drugs without obtaining permit from the Ministry of Health without any proposal of sanction.

On 22/11/2011, an additional verification team with 05 police officer from C47-Ministry of police again came to verify the export of these pharmaceuticals and determined the value of exports of these commodities in 03 years (from 2009 -2011) at about 30 million. (USD 1,557.5)

On 23/12/2011, the Investigation team from Ministry of police with 04 members came to verify and delivered the decision of prosecutions on “violating the regulations on the management of addictive drugs”.

I would like to assure all staff of Company:

  1. The exported drugs are not addictive drugs. They are only the finished products containing addictive substance and precursor, which are managed and used in the form of non-prescription on the local market (OTC product).
  2. The exporting of these finished products were done officially through Customs. The only offense is just omission of reporting to the Drug administration as Export Department considered these products as OTC ones. Hence, no need for further approval.
  3. Because the pharmaceuticals are not addictive and are exported through the customs, the criminal prosecution is unwarranted. The Company will actively work with law enforcement agencies to clarify the nature of the case soon.

An administrative violation with a value under 30 million VND, equivalent to USD 1,572.5 deployed in 03 years (2009-2011) but requiring up to 04 teams of central agencies to verify and prosecute. Although unable to prove the motives, it is not difficult for us to understand what the nature of the problem is.

As the General Director, I would like to apologize that my fighting with the negative forces has led to difficult and complicated issues for our current operations.

At this particular moment, I am looking for the sympathy and sharing of all our staff and calling for close internal solidarity, so that we can protect our company’s reputation, keep our production and business stable. This is the best way to respond to the counter-attack, retaliation by the negative forces lurking around us.

We always believe that in life, in the end truth, righteousness and reason will win.

Again, thanks to all of my colleagues in the company for sharing the hardships of these days


General Director

Ong Van Dung Pharm.



STELLAPHARM is one of leading generics pharmaceutical companies and strong producer of anti-viral drugs in Vietnam. The company established in Vietnam in 2000; and focuses on both prescription drugs and non-prescription especially in cardiovascular diseases, anti-viral drugs, anti-diabetics drugs, etc. and our products are now used by millions of patients in more than 50 countries worldwide.

The company is globally recognized for its quality through our facilities have been audited and approved by stringent authority like EMA, PMDA, Taiwan GMP, local WHO and others.

Additional information for this article: Stellapharm J.V. Co., Ltd. – Branch 1
A: 40 Tu Do Avenue, Vietnam – Singapore Industrial Park, An Phu Ward, Thuan An Town, Binh Duong Province, Vietnam
T: +84 274 376 7470 | F: +84 274 376 7469 | E: | W:

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