Local pharmaceutical giant, Intravenous Infusions Plc (IIPLC) has secured a $3.2 billion medium term loan from Ecobank Ghana Limited under the government’s stimulus package to establish a new plant.
The Managing Director, Moukhtar Soalihu, who disclosed this during the company’s turn at the facts behind the figures series organised by the Ghana Stock Exchange, said the move formed part of the expansion drive of the company.
He said the company had obtained approval from the Food and Drugs Authority (FDA) for the commencement of the construction of the new factory premises.
“New plant and machinery have been procured and delivered to the factory awaiting installation. The board and management are currently sorting out some technical and financial details to make way for the commencement of construction of the premises,” Mr Soalihu, said.
On the performance of the company, he said it recorded a strong growth in revenue by 44 per cent during the first half of 2021 in spite of the bite of the coronavirus pandemic on the Ghanaian economy.
He said the sterling performance was driven by the “the existing controls were strengthened by the new ones introduced.”
Mr Soalihu indicated that the controls introduced resulted in an increase in operational efficiency at all levels of the organisational value chain with operational costs declining by 9.7 per cent (2019) increased by 18.1 per cent year on year.
He said the company made a profit of GHS 1,450,885 resulting in an increase in retained earnings by 36.6 per cent.
“Total assets grew by 22.5 per cent (2019, 14.8 per cent ) year on year as a result of using both internal and external funds for investments in plant and equipment and other operating assets aimed at creating future value for shareholders,” he said.
He said the company took opportunity of the coronavirus pandemic to go into the production and sale of hand sanitisers and hand washing soaps.
On the outlook of the company, Mr Soalihu said the future of IIPLC continued to be bright and positive despite the effects of COVID-19.
“Policies aimed at maximising revenue and profits to shareholders are vigorously being pursued. Strengthening of the local market dominance and the export market opportunities will be the focus. IIPLC will intensify its ongoing collaboration on product development with Kwame Nkrumah University of Science and Technology (KNUST) School of Pharmacy,” he said.
He said as part of the company’s product diversification strategy, a number of new products were being brought on board under a contract manufacturing arrangement with a strategic partner from India.
The Managing Director disclosed that the company was venturing into other non-drug areas such as medical consumables and disposables.
Intravenous Infusions PLC (IIPLC) is a Ghanaian pharmaceutical company producing and distributing Intravenous Fluids in Ghana and the West African sub region and was incorporated in 1969, Intravenous began operations in 1974 as the first pharmaceutical company producing intravenous infusions in Ghana.
BY KINGSLEY ASARE