The Egyptian International Pharmaceutical Industries (EIPICO) has reported that production fell by EGP 66m in March, 19% down from its previously projected targets, whilst realising losses of EGP 93m.
In a statement to the Egyptian Exchange (EGX) on Thursday, the company reviewed the negative effects it has suffered due to the coronavirus (COVID-19) pandemic, which has also seen it reduce its workforce.
EIPICO added that, as a result of the disruption to transport and the international travel bans, the company has been unable to obtain some raw materials and production requirements. This has led to some production obstacles taking place.
EIPICO said that shipping and export operations have been affected by global travel bans, which has led to an 8% decrease in air freight of the listed shipments. Land borders have also closed, forcing overland shipping to Saudi Arabia, Iraq, Jordan, and Sudan to cease. A 25% increase in maritime shipping prices have been put in place as more demands have been made on maritime travel.
“All of this had a negative impact on achieving export sales figures in the first quarter of this year, which is $8.4m, representing 78% of the target, a decrease of $2.4m, despite the existence of numerous bids from tenders and orders to supply,” EIPICO said in its statement.
The company also noted that the local market sales of medicines for chronic diseases were significantly affected by the curfew, falling by EGP 66m or 10%.