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Indies Pharma secures JM$805 million in new funding

Indies Pharma Jamaica Limited advised it has secured a private placement bond for the amount of JM$805 million under a five-year loan repayment plan.

(Photo: Harvard Health)

Management said the loan was secured to repay Biporist Holding Inc. the amount of JM$398,750,000, which was used to purchase three acres of land in Montego Bay, St James.
The land is registered to Indies Pharma Business Park Limited.

The funds from the new bond will also be used to develop and get approval for two Abbreviated New Drug Applications (ANDA) from the US Food and Drug Administration (USDFA).

Indies Pharma outlined in its last report a per cent hike in debt obligations due to its plans for its new headquarters in Ironshore, St James.

Liabilities increased by 754 per cent (JM$498.280 million) this was predominantly due to loan for the purchase of land which will be used for the construction of Indies Pharma Ja Ltd Corporate Office and also, the adoption of IFRS 16 ‘leases’ which requires the lessee to record a liability for the remaining contractual life of the lease payments.

The company made $ 50.64 million in net profit in the quarter ended July 31, compared to $33.61 million for the similar period in 2019.
Profit for July quarter was made on revenues of J$565.83 million, representing a decrease of 1.7 per cent or J$9.98 million over the corresponding period in 2019.

For the nine month period, profit was J$159.48 million compared to J$118.24 million in the similar period in 2019.

Lower sales in the company’s third quarter resulted from the delay in shipments due to COVID-19 which led to items being out of stock, said Vishnu Muppuri, Executive Director & COO, in remarks attached to the results.

Management said  the Company’s liquidity position remains healthy with a current ratio of 1.27:1, meaning that the company has J$1.27 of current assets for every J$1 of current liabilities.