Balance Sheet & Income   

GMP & ISO

EIPICO EXPANSIONS

In 1996, the company completed its expansion project with a total investment cost of LE 82 Million, which increased EIPICO’s production area 70% and almost doubled its production capacity. The financing of the expansion was partially achieved through an incorporation of reserves which increased the company’s capital from LE 18.7 million to LE 42 million, while the rest was financed internally. The project gave EIPICO a further 5 years tax exemption.

Sales estimated to increase by 25% over the next three years.

Most of the expansion was directed towards sterile area and quality control the investment cost of LE 45,865 million (US$ 13.53 million) for expanding the sterile area represents more than 56% of the total cost of expansion (i.e. LE. 82.0 Million)

By the end of 1998, EIPICO has received government approval (decision 1285/98) to erect a new company according to investment law , to benefit from privileges and tax exemptions for the projects executed in the new cities.

The land of a surface of 37500 M2 has already been purchased in Tenth of ýRamadan City. industrial area B4 (35 KM from Cairo International airport.)

The final feasibility study shall be finalized during the first quarter of 1999.

The construction of the new plant is expected to begin during 1999 with a target production date set for 2002.

EIPICO THE EGYPTIAN INDUSTRY LEADER

Product Portfolio

The company performed its own Bio-equivalence and stability researches which enabled it to produce wide range of products increasing from 50 products at the start up operations in 1985 to 128 products in 1992, to currently 185 products under 25 therapeutic groups covering all dosage forms with no single product exceeding 8% of sales. The company produces new products yearly at a rate faster than the overall market. It’s product portfolio 141 products represents 80% of local sales and 100 % of exports are EIPICO’s own generics and the balance is produced through under license agreements with 18 multinational companies to replace imported products and to cover increasing demand. The multinational companies such as Allergan- ME& D- SK & Beecham – upjohn – Roche – Riker – Pharmaton – Serono …etc.

THE PHARMACEUTICAL SECTOR IN EGYPT:

Public sector companies are required to distribute a high percentage of their products through the public sector distributing company “Egydrug” other private companies contracted to distribute their products through “Egydrug” and other private distributors.

EIPICO’s distinguishes itself by direct selling “spot delivery” by a large integrated distribution network to reduce the reliance on public and private distribution to the minimum possible level. Its van cars, more than 200 vans and serving trucks covers all over Egypt. More than 85% of EIPICO’s sales for local market are distributed through the network giving the company the ability to generate wholesale margins and therefore maximising its profits. This is one of EIPICO’s advantages as distribution channels represent one of the biggest barriers in the Egyptian Pharma market.

Although the company is operating in a price restricted setting struggle to maintain the margins, by increasing exports and enlarging generics portfolio and increasing distribution capacity and producing new higher margin drugs to realise extra economics of scale at the company and by investing in the future in EIPICO Tech project.