SPIMACO says difficult to determine financial impact of COVID-19 measures

Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) said that it is difficult at the meantime to determine the financial impact of the government’s precautionary measures to limit the spread of the coronavirus.

The company said in a bourse statement that the temporary suspension of work in the private sector and reduction in working hours in pharmacies, clinics, dispensaries and hospitals is likely to lower sales of medicines. However, the temporary measures will have no impact on the company’s sales during the first quarter of 2020.

Earlier, the Saudi government stopped the export of medicines, pharmaceutical and medical devices at the end of March 2020, except for the deals conducted through the GCC unified procurement program.

SPIMACO’s inventory for most of its medicines that will be exported is enough to last for 6 months, while export sales do not exceed 12% of the company’s total sales over the past 2 years.

The company is also working with relevant authorities to identify the mechanism and feasibility of the private sector’s support package and any further updates will be disclosed in due course, the statement added.