By Anthony Morgan

The outlook for the Montego Bay based pharmaceutical company, IndiesPharma, looks promising. That’s the view of two of THE ANALYSTS of Taking Stock with Kalilah Reynolds.

The company’s stock price has jumped some 40% since January, trading last at $3.80.

For their first quarter ended January 2021, the company achieved revenues of $223.5 million, a 15 per cent increase when compared with the $193.7 million recorded a year earlier.

Net profit for the first quarter also increased by 20% to $47.5 million from the $39.6 million recorded in the previous corresponding quarter.

Wealth Advisor at Ideal Portfolio Services, Dwayne Taylor

Wealth Advisor at Ideal Portfolio Services, Dwayne Taylor, said there was no surprise the company recorded such strong numbers, noting that they’ve been strategic over the year as an essential medical company during the health crisis.

“Indies has developed a formula that has worked for them, having a diverse product line and a strong sales effort and they’re reaping the rewards right now, so we look to see even more positive returns over the course of the financial year,” said Taylor. 

He said the company stands to improve on their first quarter earnings as it continues to add new products to its line.

As a result of the pandemic, the company recently launched a new line of products targeting the orthopaedic and joint rehabilitation segment of the medical profession, with more on the horizon.

“It’s definitely a good push for them,” said Taylor.

Meanwhile, Research and Strategy Analyst at Sagicor Investments, Jodian Aris, agreed that the numbers came as no surprise as the company has been improving its bottom line.

Research and Strategy Analyst at Sagicor Investments, Jodian Aris,

“Relative to their stock price now, you see the Price to Earning ratio is moving more in line with the market, and so it’s really coming at the price being based on performance. It’s becoming a stronger buying point for that company,” she said.

Aris noted that the diversification strategy of the company will likely increase revenues and profit over the short term.

“The outlook for them is pretty strong. I think they had raised some funds in 2020 that they’ll be looking to get approval for two new products, and so that brings a very strong outlook for them,” said Aris.

Additionally, the Sagicor analyst said the company stands to benefit from the buoyancy in the real estate market, which they are also planning to tap into.

“They’re looking at the development of their business park, moving towards the commercial real estate space and that bodes well for their outlook,” she added. 

Indies Pharma, is the first and only local pharmaceutical distribution company to be listed on the Jamaica Stock Exchange (JSE).

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