The Moroccan pharmaceutical firm Sothema, the only drug maker listed on the Casablanca stock exchange, says its 2005 revenue stood at MAD 526 million, an increase of just 1.35% compared to 2004.
The company which manufactures some 200 products in four plants in Morocco, admits that its performance was below that of the market, which it speculates grew 3%. In all, Sothema is ranked 6th supplier of drugs in the Moroccan market. From a profit standpoint, the company managed to boost its results by 3.39% to MAD 49.91 million.
Sothema, which is led by Omar Tazi who controls a 27% stake, says it could have been worse if the labor movements in the public health sector which totaled 40 days in 2005 were expanded.
The company was affected in that its goal to launch 20 new products in 2005 was not met. Instead only five new products were launched into the market last year, reducing new revenue prospects from a forecasted MAD 40 million to MAD 17.5 million.
Private sector sales accounted for 77.5% of total revenue, and while the value of exports doubled, it accounted for just 5% of total sales.
The company is planning to raise MAD 11 million to pay for its expansion plans through a capital increase that would reach MAD 131 million. The money will be used to pay for the construction of a fifth production plant that will carry a total cost of MAD 90 million. The plant which will produce 40 million units per year of injectable drugs, is expected to go on stream at the end of this year.
As of April 1, 2006, Sothema is the 8th publicly traded company to launch a stock buy-back program. Its first repurchases occurred March 17th at a share price of MAD 666.
© The North Africa Journal 2006
