The pharmaceutical sector was not likely to face a storm despite slumping sales last year, Social Policy Minister John Dalli said.

He argued that the decline was likely to be temporary.

"As in any growth pattern it makes sense to stop to consolidate at some point... and secure better human resources. The shortage of pharmacists in pharmacies is testimony to the growing success of the industry, which is taking up the people," he said.

A recent survey by the Malta Chamber of Commerce and Enterprise found that growth in manufacturing activity came to a halt in 2008. The value added of the overall manufacturing sector, which increased by more than €60 million in 2007, declined by almost €9 million last year.

The chemical sector, of which pharmaceuticals form a large part, had grown rapidly in 2007 while in 2008, despite a slow growth, it remained the second largest after electronics, dominated by giant chipmaker STMicroelectronics.

Mr Dalli visited Arrow Pharm's facilities in Ħal Far, a pharmaceutical company that started operating in Malta in 2003. The company, which is planning to expand its premises, employs 175 people and 90 per cent of its management are Maltese.

Arrow Pharm's head of quality control, Adrian Zahra, explained how the company produced generic medicines once the patent expired. Their product offered the same ingredients as other popular brands but at a cheaper price.

"What people don't seem to realise is that, when their doctor prescribes a drug, they have the right to ask for the cheaper option," he said. People, he added, had to first overcome the mentality that branded goods were better than others on the market.

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