Shares of Gulf Pharmaceutical Industries, also known as Julphar, have yet to regain the high they reached during the first week of this month.
But over the past year, the stock has steadily increased in value. The healthcare company's first-quarter revenue jumped and sales increased in overseas markets.
Julphar's share price has hovered between Dh3.05 and Dh3.10 this week, which is a marked improvement over its price a year ago, when it was about Dh2.
The medical manufacturing company based in the UAE reported a 10 per cent growth in overall sales during the first quarter this year, at Dh310 million. Profit, too, increased - by 12.5 per cent to Dh59.4m.
Business was driven by sales in private and tender markets, with Saudi Arabia being the favoured location, according to reported figures. The kingdom was followed by the UAE, Iraq, Libya, Jordan and Kuwait. Julphar is increasingly focused on exports because of the limited size of the domestic market in the UAE, according to a Business Monitor International report released this year.
The upward trend is likely to continue. Julphar has previously announced plans for a factory in Saudi Arabia in a joint venture with Cigalah Group of Jeddah. The 300m-riyal factory will manufacture pharmaceuticals for Middle Eastern markets.
A similar plant in Algeria that will manufacture medicines, intravenous fluids and injections is eyeing expansion opportunities in the lucrative African market. The Algerian plant is scheduled for completion in 2014.
A factory will also be set up in Ethiopia, bringing the total overseas investment by Julphar to US$70m.
The main stakeholders in Julphar, which is listed on the Abu Dhabi Securities Exchange, include the Government of Ras Al Khaimah, Arab Company for Drug Industries and Medical Appliances, and Islamic Development Bank.
Julphar is the largest local drug manufacturer.
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