Biopharm Earns 24% Higher Net Profit than Expected

It is estimated at DZD 3.5 billion and represents Algerian dinars 174 per share, according to the information sheet regarding the group’s initial public offering. The turnover for the first nine months of 2015 of the private pharmaceutical group Biopharm reached DZD 37.2 billion, the company announced in a press release yesterday.

Net profit is estimated at DZD 3.5 billion. On an annualised basis, this would represent Algerian dinars174 per share or 24% more than the earnings per share predicted for 2015 of Algerian dinars139, published in the information sheet regarding the group’s initial public offering. “This information to the public supplements the financial information published in the information sheet referred to by the Commission d’organisation et surveillance des opérations de bourse [(COSOB) [Securities and Exchange Commission]”, Biopharm reports. The initial public offering of its shares at a fixed price will be open for a limited period starting today until next 13 March.

Biopharm opens up its capital through an initial public offering of 5,104,375 shares, representing 20% of its capital, at the transfer price of Algerian dinars 1,225 per share. Buyers of the transferred shares will assume possession of the securities on the date of delivery of the securities. The transferred shares also confer the right to collect any dividends which the annual general shareholders’ meeting deliberating on the results of financial year 2015 may decide to distribute. Interested investors may subscribe through one of nine (9) stock market brokers (SMB), Badr, BDl, BNA, BNP Paribas El-Djazaïr, Cnep-banque, Société Générale Algérie and Tell Markets, which comprise the investment syndicate headed by the BEA. Biopharm is an industrial and commercial group which has invested in the pharmaceutical sector since the start of the 1990s in order to open up this sector to private investment. Biopharm currently controls five subsidiaries. In addition to the industrial activity developed by its parent company, Biopharm SPA, the group has developed bulk import and distribution activities (Biopharm Distribution SPA), pharmacy distribution activities (Biopure SPA), logistics activities for the pharmaceutical industry (Biopharm Logistic) and medical promotion and information activities (Human Health Information).

Biopharm manufactures 59 products of different galenic formulations and therapeutic classes for its own line and on behalf of third parties. 41 products are Biopharm brand products. The other products are manufactured under contractual relationships with its laboratory partners. In 2014, the company produced 31 million sales units in dry, liquid and paste form. The group’s development plan foresees the launch of 25 new products over the next three years in order to reinforce Biopharm’s position in this business segment. Since 2011 the group has exported about 15 of its products to the African market (Mauritania, Mali, Niger).

The approval in 2015 of the production unit by the Agence nationale française de sécurité du médicament (ANSM) [French Agency for the Safety of Health Products] has opened up the possibility for future exports to the European market. The group’s balance sheet is characterised by strong capitalisation and low indebtedness. Net profit has continuously increased. Equity progressed from 75% in 2011 to 85% in 2014.

Net working capital is rising steadily, with an average annual rate of growth of approximately 26%.

This growth is essentially due to the increase in equity. This reflects the stable profitability of the company and its historic tendency to reinvest a substantial part of its profits.