Cairo - Mubasher: Pharos Research said it will maintain the fair value of the Egyptian International Pharmaceutical Industries (EIPICO) at EGP83 per share with “Equal weight” recommendation.
The research house pointed out that, post-currency floatation; EIPICO’s cost base is set to increase dramatically.
Moreover, with the expected hike in COGS post floatation and the company’s inability to pass on these costs to their consumers, since their pricing is restricted by the Ministry of Health, margins are destined to face pressure, said Pharos.
Pharos noted that it is unlikely that the Ministry of Health will allow price hikes over the short-term, but the limits to these potential price increases will be instrumental for the sector’s growth outlook. Delta Sugar’s head resigns
