Jamjoom Pharma targets 17% revenue growth, higher profit margin in 2023: CEO

Jamjoom Pharma's CEO Tarek Youssef Hosni

Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) aims to raise its revenue by 15-17% and increase earnings before interest, tax, depreciation and amortization (EBITDA) margin by 30% in 2023, CEO Tarek Youssef Hosni told Argaam.  

He explained that the company is currently moving towards surpassing the set goal over the remaining three quarters.   

Hosni pointed out that Jamjoom Pharma’s performance in the first quarter of 2023 is a testament to the company’s drive and ability to deliver long-term shareholder value. The firm is committed to providing affordable healthcare solutions to the Middle East and Africa (MEA) region, while maintaining the highest quality standards.  

The profit growth is mainly due to a combination of factors, including the successful implementation of Jamjoom Pharma’s strategy, strong demand for its products, better-than-expected growth in the overall pharmaceutical market, as well as price increases for some products received in the latter part of the first quarter.  

The Saudi Food and Drug Authority (SFDA) regulates the prices of pharmaceutical products in the markets in which the company operates, Hosni  said, pointing out that the prices of some products were reduced by the SFDA for various reasons. However, at the end of last year, the idea of increasing the prices of some products was discussed.  

He added that the company successfully negotiated the price increase with the authority. Since it received most of the potential price increases, it does not expect a significant price shift during the current year, the CEO said. 

Jamjoom Pharma’s portfolio consists of more than 120 brands in 10 therapeutic areas, namely ophthalmology, dermatology and consumer health, where it holds a leading position in key markets.  

Meanwhile, Hosni pointed out that the company achieved remarkable growth in revenues, which resulted from superior performance in various therapeutic fields, in addition to the growth of revenues from dermatology and general medicine significantly.  

The contribution of the central nervous system field doubled as a result of the successful implementation of the company's strategy based on producing and marketing high-quality products in the most profitable markets, in addition to the geographical performance that witnessed significant growth in the markets of Saudi Arabia, Iraq and the GCC, he indicated. 

Speaking on future projects, Hosni noted that the firm is in the process of completing the regulatory procedures to start commercial production in each of its facilities - the main facility in Egypt and the facility in Jeddah - by the second half of 2023, indicating that productivity is expected to increase by about 70% of the company's annual production rate upon operating both facilities. 

He added that Dapazin product was successfully launched in Q1 2023 to become the first brand in the field of diabetes treatment that will introduce more high-quality products this year in line with the company’s strategic direction. 

According to data compiled by Argaam, Jamjoom Pharma’s net profit increased to SAR 84.4 million by the end of Q1 2023, compared to profits of SAR 43.5 million during the same period in 2022.