EIPICO revenues decline 3.4 percent in Q1
The Egyptian International Pharmaceutical Industries Company (EIPICO) posted its first quarter results for the financial year 2001, exhibiting a 3.4 percent decline in revenues, as a result of the devaluing currency and fierce competition. Net income consequently dropped one percent, according to a Prime Securities report. In FY 2000 EIPICO revenues increased 3.2 percent to 388.7 million Egyptian pounds ($92 million) from EP 376.5 million in FY 1999.
Founded in 1983, EIPICO currently ranks first of the private pharmaceutical companies operating in Egypt. It has managed to sustain a stable eight percent market share over the past two years, with an expected decline upon implementation of the World Trade Organization (WTO) agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
EIPICO is one of the 14 pharmaceutical companies included in the Egyptian MSCI index with a 4.2 percent weight to the total index. The industry remains vulnerable to fluctuations in the performance of the Egyptian pound, as 80-85 percent of pharmaceutical raw materials are imported.
The capital of EIPICO is distributed as follows: 36 percent for ACDIMA, 21 percent for the banks and the insurance companies, seven percent for the Medical Union Syndicate, five percent for Social Insurance, five percent for the employees and board members, and 26 percent free float. ― (MENA Report)
© 2001 Mena Report (www.menareport.com)