Indies Pharma acquires land for commercial project at Ironshore
PHARMACEUTICAL DISTRIBUTOR Indies Pharma Jamaica Limited has bought land at Ironshore for warehouse space and other commercial property.
The three-acre property costing $411 million was acquired in late March, financed by a loan from Indies Pharma’s parent company, Bioprist Holdings, according to Dr Guna Muppuri, who controls both entities.
Muppuri said that one of the options under consideration for the commercial complex is the construction of a call centre and supporting stores.
“We got a good deal on the property because of our goodwill and our good relationships with the community,” he said, without naming the seller, who was said to be a hotelier.
The property is located along the same stretch as Riu Hotel and Toyota Jamaica at Ironshore, but Muppuri said the seller was not affiliated with Riu.
Indies now holds assets of $1.4 billion as at April compared to $721 million a year earlier, with the bulk of the increase related to the land acquisition.
Last year, Muppuri announced a mega development in Ironshore for Indies and Bioprist.
That development was initially placed on hold due to concerns by employees of increased commute time and cost. The land acquisition will see the development executed over the medium term.
Indies also released its second quarter ending April 30, a period that incorporates the partial lockdown and economic fallout due to COVID-19. Despite this – but not surprising since companies in the healthcare market are positioned for business in a health crisis – Indies recorded its highest ever quarterly sales, surpassing $207 million, compared to $193 million a year earlier.
Profit doubled to $68.5 million, or five cents per share, from $32.5 million, or three cents per share, a year earlier. Muppuri, who is Indies Pharma’s CEO, said that the company’s sales growth remained steady during the quarter.
“There was a pure, organic surge of chronic diseases medicines,” he said.
The company has seen sales growth in its core prescription medicines since the coronavirus was detected in Jamaica in early March. Muppuri said that a lot of non-prescription medicines, such as cough medicine, had largely been out of stock since January due to supply issues, with the pandemic holding up trade in Asia.
steven.jackson@gleanerjm.com