Saudi Entertainment Ventures — a subsidiary of the Saudi Public Investment Fund — raised its stake in the capital of the 10th of Ramadan Pharmaceutical Industries and Diagnostic Products ‘Rameda’ from 4.51% to 11.01% this week.
Arqaam Capital bought 65m shares of Rameda with a total deal value of EGP 135.2m, with an average purchase price of EGP 2.08 per share.
In 2021, Rameda achieved profits of EGP 180.08m, up from 2020’s EGP 111.51m, taking into account minority rights.
The company’s revenues also increased to EGP 1.25bn by the end of 2021, compared to EGP 960.17m in revenues in the previous year.
Furthermore, Al-Ahly Pharos Research for Securities said that Rameda recorded sales of EGP 829m with a growth of 25% y-o-y to partially rebound in volumes annually, driven by the increasing demand for the company’s antivirals and antibiotics.
The research also indicated that tendering business sales increased by 87.9% on an annual basis and 152.3% on a quarterly basis in the fourth quarter (4Q) of last year, as volumes recorded an increase of 17.7% on an annual basis and a jump of 100.5% on a quarterly basis.
Additionally, the company’s export revenues grew by EGP 29m in 4Q of 2021, with a growth of 35.4% on an annual basis, to record export sales of EGP 88m, an increase of 76.4% on an annual basis.
This was attributed mainly to the strong performance of the company’s antiviral drugs, which are characterised by lower volumes and higher prices.
Al-Ahly Pharos Research set the fair value of Rameda share at EGP 2.75 per share with a recommendation to increase the relative weights.