EARNINGS WATCH- Rameda Pharma’s net profits dropped 36% y-o-y in FY2019 to EGP 82.4 mn, down from EGP 129 mn a year earlier, the company revealed in its earnings statement (pdf). The dip in profits came as the company shut down production lines earlier in the year for key upgrades. Consolidated revenues for the year came in at EGP 894 mn, up 11% y-o-y, from EGP 805 mn during the last year. CEO Amr Morsy said it was “a landmark year” ending with the group’s listing on the EGX in December and “the completion of a capital increase for EGP 582.5 mn that will enable Rameda to accelerate its growth potential.” Rameda, which launched eight new molecules last year, said it would use proceeds from the IPO to directly fund growth, including the acquisition of new molecules and opportunistic M&A.

Noting that Rameda is one of the fastest-growing companies in the industry here in Egypt, Pharos Holding recently initiated coverage of Rameda’s shares with a fair value of EGP 5.50 per share (implying upside of nearly 17%) and an “overweight” recommendation.