Orchidya Pharmaceuticals, specializing in eye medications, intends to inject investments worth 8 million euros during the current year as part of a plan aimed at enhancing production capacity and improving operational efficiency. This was stated by Karim Osama Abbas, the CEO and Managing Director of the company, who emphasized the importance of this step in supporting the company's growth.
Abbas noted that the company plans to add a new production line, in addition to upgrading its existing lines and increasing storage spaces. Currently, the factory operates at 70% of its total capacity, which amounts to 90 million units annually.
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Abbas clarified that the company aims to achieve sales worth 2.3 billion Egyptian pounds by the end of this year, marking an increase of 15% compared to last year's sales, which reached 2 billion Egyptian pounds. Orchidya also seeks to boost its exports to 700 million Egyptian pounds by 2026, up from 620 million Egyptian pounds last year.
The company exports its products to over 40 countries across Africa and the Arab states through its factory located in the industrial zone of Al-Obour. It also aims to strengthen its presence in the European market and expand into Gulf countries.
Background & Context
As part of its future expansions, Abbas revealed plans to establish a new factory for dietary supplements in the city of 10th of Ramadan, covering an area of 10,000 square meters, with actual production expected to commence in 2027. The company targets a 90% increase in dietary supplement sales, which are projected to reach 220 million Egyptian pounds by 2026.
Currently, Orchidya holds approximately 27% of the eye medicine market in Egypt, reflecting its strong position in this sector. The company relies on importing raw materials from abroad, particularly from China, India, and Europe, while a significant portion of packaging materials is manufactured locally.
Impact & Consequences
Abbas pointed out that recent global disruptions have led to a doubling of shipping costs, posing a significant challenge. However, he confirmed the availability of a strategic stock of raw materials sufficient for 3 to 6 months. He also reiterated the company's commitment to ensuring the availability of medicines in the local market, even under pressure, while continuing to supply the General Authority for Unified Procurement, hospitals, and universities.
On the financial front, Abbas explained that rising interest rates exert pressure on corporate profitability, alongside challenges related to price controls, despite ongoing cooperation with relevant authorities to achieve a balance between production costs and drug prices.
Regional Significance
This investment represents a positive step in enhancing the pharmaceutical sector in the region, contributing to the provision of high-quality medications. It also reflects a trend towards expansion into foreign markets, thereby enhancing the ability of Arab companies to compete in global markets.
In conclusion, these ambitious steps taken by Orchidya reflect its commitment to delivering innovative and effective products, contributing to the improvement of public health in the region.