Indies Pharma to repay associate with funds from new bond
Chairman and CEO of Indies Pharma, Dr Guna Muppuri.
Indies Pharma Jamaica Limited has advised that it has negotiated a loan of $1.12 billion with Sagicor Investments Jamaica Limited to repay funds used to acquire land.
The loan is by way of private placement bond, Indies Pharma said in a Jamaica Stock Exchange release on Monday.
Indies advised that the transaction is still pending and the company will provide further disclosure to the market in due course.
For the six months ended April 30, 2020, current liabilities for Indies Pharma increased by 562 per cent ($467.26 million), mainly because of a short-term loan borrowed to purchase land that will be used for the construction of Indies Pharma Ja Ltd Corporate Office and warehousing.
The funds from Sagicor, Indies said, will be used to repay associate company and lender Bioporist Holdings Inc $398.75 million, which was used to purchase three acres of land in Montego Bay, St James. The lot is registered to Indies Pharma Business Park Limited.
Part proceeds, the company said will also be used to develop and get approval for at least two Abbreviated New Drug applications (ANDA) from the US Food and Drug Administration (USDFA).
The pharmaceutical company, which started in 2003, develops and markets prescription and over-the-counter drug.
It is also a part of the Bioprist Group, which is into property development and business process outsourcing.
Net profit for Indies Pharma climbed 28 per cent to J$108.84 million from $84.63 million over the six months ended April 30, 2020, compared with the previous year.
Overall revenues for the six months ended April stood at $400.96 million, up 11 per cent or $39.66 million over the corresponding period in 2019.
For the April quarter, revenue climbed to $207.24 million compared to $193.12 million in the similar period in 2019.
Net profit for the period rose to $68.53 million compared to $32.57 million in 2019.