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The Tenth of Ramadan Company for Pharmaceutical Industries and Diagnostic Products (Rameda) is to produce new drugs during 2020 that treat the digestive system, neurological problems, and antibiotics for young and old patients, as well as supplements and modern medicines for diabetes.
The company’s CEO Amr Morsi said that they are currently focusing on launching new products and registering others to increase the market share, to become one of the major pharmaceutical companies in the Middle East and Africa.
He added that the company is currently registering 350 pharmaceutical compounds, provided that these preparations are launched in the coming years, adding that most of these products are in therapeutic areas with rapid growth.
Morsi pointed out that the expansion plan of his company during the coming period, which will be funded by the proceeds of the offering on the Egyptian Exchange, focuses on the expansion of offering new pharmaceutical products that the company does not cover, provided that this is done through the acquisition of companies that produce these products.
The company is currently examining opportunities for acquisitions but the matter is still under study and has not yet entered into actual implementation yet. It is also working on its products and launching new ones, aiming to offer between 12 to 15 products annually and make the most of the manufacturing capabilities available at its factory to increase local sales and export.
The company’s expansion is also focused on boosting its export volume by storming new export markets in the African continent.
Morsi pointed out that his company has implemented investments worth EGP 500m since its acquisition in 2011, and pumped EGP 240m of it during the last three years, in order to increase the production capacity 1.6 times.
The expansions made by the company included adding production lines such as sterile plastic ampoules BFS, to raise production capacity from 35m to 144m ampoules per year. The line began operating last April. The company also finished last September the redesign and development of a production area in line with the latest standards.
He emphasised that the promotion round of the company’s offering on the Egyptian Exchange (EGX), which included various countries in the world, including London, America, South Africa, and the UAE, and revealed the volume of investor interests in the Egyptian drug market, and that it is witnessing great growth rates compared to Africa and the world thanks to the high population in Egypt. He expected that the pharmaceutical industry would witness a significant growth in the future, with the expected increase of the population, as well as the launch of a comprehensive health insurance system, many opportunities for market growth, and higher awareness of citizens to spend on health care.
Rameda succeeded in covering the public offering of its shares 36.3 times, as the private offering of its shares was covered 1.17 times, and the company offered about 49% of its shares on the EGX to increase to EGP 1.7bn and start trading the stock on 11 December.
The offering is divided into two tranches, the first is a public offering for small investors, representing 5% and the second includes the remainder in the form of a private placement at the share price of both tranches of EGP 4.66 per share.
Rameda was established in 1994 and owns 20 production lines and three completely independent factories, markets 97 products in 2018, and works in six treatment areas. Gravel Investments Limited in the British Virgin Islands is the owner of the company. The paid-up capital of the company is currently EGP 160.9m distributed on 643.6m shares with a nominal value of EGP 0.25 per share. Rameda’s prospectus showed that the fair value of the company’s share is EGP 6.67, and that the profit multiplier was 33.2 times on 30 June.
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