Sina Darou on the Path of Growth

2017/08/13

Sina Darou Laboratories Company (public joint stock) announced a17.55% growth in the past fiscal year. Meanwhile, the growth in local currency sale of the drug industry in the first half of 1395 (March 21, 2016 – March 20, 2017) was approximately 16.02% as compared to the same period in the preceding year. Based on the estimation conducted, the company sale in 1395 (2016 – 2017) amounted to 1,869,273 million IRR which shows an increase of 12.61% in terms of quantity and 14.43% in terms of homogenous sale over 1394 (2015 – 2016).

Sina Darou Company is a subsidiary of Kharazmi Investment Group with over 50 years of experience. It is among the 10 major pharmaceutical companies in the country and is also among the top pharmaceutical companies in the stock market. The company earned the 11th place in terms of transparency among the stock market companies and won the first place twice in the past years.

It must be noted that 48.73% of the shares of Sina Darou belong to the Kharazmi Investment Group (public joint stock).

 

Rise in Production & Sales

In the fiscal year ending to March 21, 2017, homogenous production of various drugs, including drops, ointments, ampoules, solutions and sprays in Sina Darou amounted to 303,204 thousand items showing an increase of 14.02% over the previous year.

The largest increase in the production index belonged to the disposable ophthalmic drops with a rise of 106.1% in consumption over the year before. The ophthalmic and topical ointments group, with a growth of 0.25%, experienced the lowest increase.

The company’s net sales in the reported fiscal year reached the figure 1,869,273 million IRR (17.55% growth compared to the year before). Out of the total sales, 21,391 million IRR belongs to export sales.

 

Increase in Company’s Capital 

The capital of the company based on the approval of the extraordinary meeting of the General Assembly of the shareholders dated 1395/10/20 (January 10, 2017) and the approval of the Stock Exchange Organization increased from 200,000 million IRR to 400,000 million IRR from the claims and cash input by the shareholders which has been divided into 400,000,000 shares each with a value of 1000 IRR.

 

Latest Achievements

Sina Laboratories Company ended the year 1395 (2016 – 2017) while the relative economic stability and easing of the numerous restrictions on Iran brought a more tranquil conditions for the pharmaceutical industry. Inflation was brought under control more than before. Foreign exchange experienced little fluctuations and relative support for the industry prepared a more suitable ground for dynamism. Under these circumstances, the staff of the company in a sincere and cooperative atmosphere and with a spirit of convergence and unity, managed to start the year 1396 (2017 – 2018) with honor and respect.

The most important achievements of the company in the reported fiscal year are briefly cited below:

1- Continued implementation of ‘transfer and development project’ so that by the date of preparation of this report 67% of construction operations, 30% of construction of the ‘clean room’ and 42% physical progress of the entire project had been done. According to the schedule by the end of 1396 (2017 – 2018), the new machinery would be purchased, cleared (from customs), installed and become operational.

2- Negotiations have been completed with an Italian producer of oral spray and the first stage of production will begin soon. Negotiations are also underway with the companies interested in licensed production or joint cooperation for production in Sina Darou.

3- Diversifying manufacture of single dose products which had been promised in the previous session of the General Assembly. Permits were obtained from the Food and Medicine Organization for two products which were made and submitted to the distributing companies in the month of Ordibehesht (April/May). It is hoped that with their scientific presentation and marketing, the same as Sinalone (eye drop), the new products would be welcomed by the ophthalmology society and take over an outstanding share of the market.

4- Scientific presentation of export medicines in Afghanistan and Iraqi Kurdistan has been launched and planned by a selected team of our representatives in those countries under the supervision of Sina Darou. Production of items agreed upon will become start in 1396 (2017-2018). In this way, the share of Sina Darou export will increase from 1.1% in 1395 (2016 – 2017) to 4% in 1396 (2017 – 2018).

5- With the strategy to activate Darmangar Sina Company (belonging to Sina Darou) and efforts of the Board of Directors and Managing Director of the said company, action has been taken to acquire representation of the European supplier companies and it is expected to reach profitability in 1396 (2017 – 2018).

6- An increase of 12.61% in quantity sales, 17.55% in local currency sales and 22.7% in special profit after tax deduction in comparison to 1394 (2015 – 2016) is an outstanding achievement realized despite the exhaustion of most machineries of the company. The role of price increase is meager with regard to this accomplishment.

Forecasts for 1396 (2017 – 2018) suggest an increase of 23% in quantity sales, increase of 29% in local currency profit and 25% in profit compared to 1395 (2016 – 2017).

 

Future Plans for More Sales

The marketing and sales department of Sina Darou Laboratories Company with an aim of promoting the quantity and local currency sales of its products, intends to attract scientific representatives in different areas and through regular training, participation in medical conferences and congresses in Tehran and the provinces, and broad advertising in specialized magazines, maintain a stronger presence in medical forums.

Meanwhile, through close relationship with the partner distribution companies and by constantly monitoring them in the tiny supply of products, the company aims to play a more effective role. Also, through reviewing and following up opinions of the target community, it tries to make realization of the targets of plan and budget of the company possible.

 

New Products and Projects

The following are new products of Sina Darou Company some of which have reached final result and have been supplied:

Stabilization of formulation of two products in the form of topical ointment for export and two single dose products competitive with imported samples.

Completion of the formulation of a number of oral sprays and multi-dose artificial tears gel which will reach mass production stage after receiving the permit and, if necessary, clinical studies in 1396 (2017 – 2018) onwards.

Continued supply of specialized low consumption drops usable after eye operation and also free supply of Cysteamine drop for those suffering from Cystinosis throughout the country are among services that have met great satisfaction of eye specialists and patients.

It should be noted that Sina Darou in line with accomplishing its social responsibility, has taken effective measures in the field of saving energy (in power and utilities sectors) and in protection of the environment through wastewater treatment system, waste management, etc., as well as increasing the hygienic level of the staff. The company’s human resource development activities also include holding specialized training courses for the staff and improvement of human resource quality through staff selection, top choices, job analysis and promotion of the health and safety of the employees.