Pharmaceutical company, Intravenous Infusions PLC, has recorded a 55 percent increase in revenue due to the re-organisation of the business units of the company.
The turnaround, which drove up revenue of the indigenous company, was due to a strategic decision to transform two of the main business units: Large Volume Parenteral (LVP) and Small Volume Parenteral (SVP).
The company’s profit after tax stood at GHS2,730,682 in 2017, a huge increase from the GHS669,945 generated in 2016 while earnings per share (eps) in 2017, which was GHS0.012052, has since increased by 307.10 percent representing a 16.4 million year on year increase.
The principal activity of the company, is the manufacturing and marketing of pharmaceutical products.
At the company’s public listing on the Ghana Stock Exchange (GSE) in 2015, its initial public offering (IPO) grew at 2.2 times, while its gross profit was at 3.2 times and operating profit grew at 34.4 times.
David Klutsey, Managing Director of Intravenous Infusions PLC, speaking during the launch of the company’s 2017 report in Accra said during the year, his outfit undertook a strategic review to identify the challenges to its operational growth and profitability.
To that effect, he said renegotiation of credit terms with key overseas suppliers were undertaken to align closely with payables and receivable terms.
‘’We also undertook a comprehensive review of our plant and machinery and significant progress has been made to replace the plant where necessary under the process of private placement.’’
According to him, the company has secured an agreement in principle with some shareholders in raising GHS5.94 million through private placement to finance the remaining capital and non-capital items needed to expand and improve operations of the company.
Mr. Klutsey however noted that despite the positive signs, the company is still facing challenges in relation to adequate working capital due to the inability of the National Health Insurance Authority (NHIA) to fulfil its payment plans to hospitals and other facilities in a timely manner.
He added that GHS5.5 million will be needed to clean up the books and have adequate working capital and settle its overdraft.
Klutsey, added that as part of efforts to improve the company’s revenue and outlook, Intravenous Infusions PLC has signed a strategic partnership agreement with the School of Pharmacy, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi to develop generic SVPs and LVPs and to deliver new products in the coming years.
He used the occasion to appeal to NHIA and government to accelerate its payment plan and save the company from its current predicament.
By Mawuli Y. Ahorlumegah