A source has revealed that the Egyptian pharmaceutical company, EIPICO, plans to invest about EGP 800m over the next three years, directed towards re-modelling and renewing the machinery at its facilities. The financing will not be directed to its biosimilar project.
The source added that the company plans to invest around EGP 169m over 2021, directed towards the purchase of new machinery for EIPICO 1 and EIPICO 2, servicing the production and packaging of ointments and pills along with facility renovations.
The company invested around EGP 300m-EGP 340m between 2019 and 2020, which was directed towards upgrading and renovating existing facilities. The investment resulted in an increase of EGP 73m in revenues per annum.
“EIPICO’s current focus is on the production of medicines used in treatment protocols for the novel coronavirus (COVID-19), where the company currently produces seven COVID-19 related medicines including Favipiravir, Remdesivir and paracetamol,” the source said, “EIPICO plans to capture the recovery currently happening in the local market, given that no lockdowns are implemented during the second wave of COVID-19.”
The company’s management expects to increase the prices of 20-25 products in 2021, with three products already having undergone re-pricing during the first 10 days of January.
EIPICO also plans to reach an ASP per unit of EGP 15.00 by the end of 2021. At the same time, the company’s management plans to increase tender contribution to revenues going forward.
The company produces 18% of Egypt’s total antibiotics market, representing around 22% of total sales. It took a hit in 2020 because of the closure of outpatient clinics and the pandemic-related lockdowns.
Given that there are no lockdowns on the table during the second wave of the coronavirus, EIPICO plans to capitalise on its solid ground in the antibiotics market and compensates for the 2020 hit.