DAS Pharma seeks approval for gov’t’s US$6m stimulus package

Dannex Ayrton Starwin Plc (DAS Pharma), the new entity formed after the merger of Dannex Limited, Ayrton Drug Manufacturing Limited and Starwin Products Limited, will hold an Extra Ordinary Meeting (EGM) in March to seek approval from shareholders for a US$6million fund from government. The stimulus package is being engineered by the Ministry of Trade and Industry.

The new entity was successfully listed and begun trading on the Ghana Stock Exchange January 15, 2020. As a result, it is seeking further authorization from shareholders of the merged entity to complete the pending application for the fund.

The application for the stimulus package had been mooted by the erstwhile Dannex Limited. The company was selected and approved for support under the programme; Dannex Limited with the approval of its shareholders subsequently applied to GCB Bank to access the stimulus facility.

But following merger, the new entity is now seeking approval from its shareholders to go ahead with the application from the Ministry of Trade and Industry for assistance under the Government of Ghana Stimulus Programme for struggling but viable companies.

The GBC Bank is currently processing the stimulus facility application and it is understood to have reached an advanced stage.

The new entity will use the funds to pursue its growth agenda. It intends to invest the funds in retooling of factories, laboratory, information technology and sales operations.

It will also fix factory gaps identified by the Ghana Food and Drugs Authority, as captured in the Corrective Action Preventive Action (CAPA) plans.

The stimulus facility comes with a concessionary interest rate of 10percent which the company believes will be extremely beneficial.

Although the interest rate applicable in total to the stimulus facility is 20percent, the Government of Ghana through the Ministry of Trade and Industry would bear 50percent out of the 20 percent of the interest rate payable.

Ahead of the meeting slated for March 20, 2020 the Chairman of DAS Pharma, Nik Amarteifio said, “the business world is changing and new realities are upon us. To survive the next 50 years and beyond, new dynamics would have to be introduced and applied.  Technology is fast changing the landscape of our industry like the advent of online pharmacies and payment systems which we need to respond to.

It is for this reason of changing business dynamics that the boards of the three companies recommended to its shareholders that the companies be merged instead of allowing them operate individually.”

He added, “The merged entity is poised to become the largest pharmaceutical manufacturing company in Ghana, with a range of 80 plus products, all manufactured here in Ghana. It will have the largest distribution network in the country.”

Mr. Amarteifio anticipates that Dannex Ayrton Starwin Plc would have a workforce of about 600 plus, comprising sales, laboratory staff and production staff, as well as analysts, pharmacists, marketers and managers.

Additionally, he said the company will have about 2,000 wholesale and retail customers. He expects tangible synergies to be created from the merging of administration, procurement and production operations of the three entities, leading to increased efficiency, reduced operational costs, reduced financing costs and increased profitability.

Source: thebftonline.com

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