Pharmaceuticals

The Company

SAIDAL Group was created in 1982, following the restructuring of the Pharmacie Centrale Algérienne. The company’s initial operations started in the factories of El Harrach, Dar El Beïda and Gué de Constantine. In 1988 SAIDAL was given the antibiotic complex designed by the Société Nationale des Industries Chimiques.

SAIDAL became a public company with independent management in 1989 and was granted the right to buy stakes in new or existing companies in 1993. Four years later, SAIDAL was restructured as an industrial group with three subsidiaries – Pharmal, Antibiotical and Biotic. The group merged all of these wholly owned subsidiaries in January 2014, after which point a new organisation was formed.

SAIDAL has 80% of its capital held by the state, while 20% was sold to the public in 1999 through a public offering, with shares listed on the Algiers Stock Exchange. The company participates in the implementation of national medicine policy and is also engaged in the production of generic drugs.

In addition to the structures of SAIDAL’s management division, the company has eight production facilities with a combined capacity of 200m units per year: Médéa, Dar El Beïda, Gué de Constantine, El Harrach, Cherchell, Annaba, Batna and a dual facility in Constantine that specialises in the production of both insulin products and syrups.

SAIDAL also has three regional distribution centres that are located in the eastern, central and western parts of the country. Through this infrastructure, the group markets over 200 different products, separated into 20 classes of drugs (cardiology, diabetes, etc.) Medications come in many dosage forms, including pills, topicals, liquids and injections.

The company’s subsidiaries are Somedial, of which SAIDAL owns 59%, and Iberal, with a 60% stake. The group also has significant shareholdings in other firms, including Winthrop SAIDAL Manufacturing (30%) and Pfizer SAIDAL Manufacturing (50%). SAIDAL also has a stake in ongoing projects in the country, such as Project SAIDAL-North Africa Holding-FNI (19%) and Project Taphco (44.51%), as well as holdings in Algérie Clearing (6.67%), Nover (4.46%) and Acdima (0.38%).

In 2013 SAIDAL’s revenues reached AD11.4bn (€106m), with a sales volume of 119m units, down 6% from 2012. Sales accounted for 76 % of total value and 87% of volume. Accounts receivable stood at AD5.5bn (€51.15m), equivalent to five months of turnover, while SAIDAL’s accounts payable fell to AD1.3bn (€12.1m), less than half the level seen in 2012. This decrease was mainly due to the restating of debt for Antibiotical and Somedial. Of the company’s AD925m (€8.6m) investment budget, AD105m (€976,500) was allocated to equipment renewal, while the remaining AD820m (€7.63m) was put towards implementing the development plan. Human resources were reduced by 10% from 2012 to 2013, resulting in a workforce of 3650 people.

The group’s consolidated net profit stood at AD2.66bn (€24.72m), a 36% year-on-year increase from 2012, when it reached AD1.97bn (€18.28m). The net cash position also increased, by 17%, expanding from AD5.7bn (€53m) in 2012 to AD6.7bn (€62.3m) in 2013. Despite improved management processes over the year, inefficiencies pertaining to outdated equipment, as well as constraints related to the reorganisation of the group, persist.

Development Strategy

SAIDAL Group’s Plan de Développement 2010-14 (Development Plan 2010-14) focuses primarily on upgrading existing facilities and building new factories, as well as establishing new centres dedicated to research and development, and bioequivalence. The strategic plan aims to modernise five facilities for generic drugs and another specialising in the production of bottled insulin. Several new factories are also planned, including four for generic medications, one for anti-cancer treatments and one for insulin in cartridges.