| Mon 26 Feb 2007, 16:42 | | ENL - Enaleni Pharmaceuticals - Enaleni announces |
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ENL
ENL
ENL - Enaleni Pharmaceuticals - Enaleni announces R90-million site upgrade
Enaleni Pharmaceuticals Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/018027/06)
(JSE code: ENL & ISIN: ZAE000067740)
("Enaleni Pharmaceuticals")
Enaleni announces R90-million site upgrade
Date: 26 February 2007
Enaleni Pharmaceuticals Limited, South Africa`s fastest growing pharmaceutical
group, is to upgrade its site and manufacturing facilities in one of the largest
single investments to be made within the local pharmaceutical manufacturing
industry. The R90-million upgrade, which is in response to strong growth within
the group, will see Enaleni becoming one of the first Pharmaceutical Inspection
Convention ("PIC/S") compliant facilities in South Africa and matching the
highest standards for pharmaceutical manufacturers in the world.
With work having commenced in February 2007 and due for completion in 2008, the
upgrade to the 15 000 m2 Mobeni plant will result in four times greater
capacity. The new facility will also boast a new analytical laboratory and all
new primary processing equipment.
"Adherence to PIC/S will make Enaleni`s manufacturing standards comparable with
those of the world`s top pharmaceuticals companies," said Enaleni chief
executive officer Trevor Edwards. "This will give Enaleni`s products greater
international recognition, ensuring export-quality standards."
"Such a facility will also be a boost for the economy of Durban and KwaZulu-
Natal," said Edwards. "We aim to establish a model manufacturing site for the
pharmaceutical industry in South Africa. This upgrade will make Enaleni a
manufacturing leader in this country by opening up major opportunities for us as
a contract manufacturer for multinational pharmaceutical corporations and
strengthening our chances of winning government contracts in South Africa. It
also demonstrates our commitment to the local industry and reverses the trend of
closing local facilities and relocating manufacturing to other countries. "
In addition to its strong portfolio of own brands which includes FirstPharm
Pharmaceuticals, Bioharmony, Muscle Science, Hercules and Caivil, Enaleni also
currently manufactures on behalf of several leading pharmaceutical companies,
such as Reckitt Benckiser SA, Pharma Dynamics and Merck Generics. In the longer
term, the company intends to manufacture some of the Cipla Medpro products at
the new facility.
The upgrade, which will be funded through equity, is in response to the strong
growth within the group and advancing regulatory requirements. All divisions at
the company have been growing revenue ahead of expectations, placing pressure on
the group`s existing production facilities. The company will continue to invest
heavily in staff skills training to PIC/S requirements over the next 18 months.
The group forecast published on 28 November, 2005, for the year ended 31
December 2006 showed a projected 118% rise in earnings per share to 25.7 cents.
This rise comes on the back of forecast increase in revenue to R731 million,
almost treble the corresponding period in 2005. Operating profit for the year
was forecast at R178 million. The company will be announcing its 2006 results on
19 March, 2007. Last October, Enaleni won the medium corporate category of the
Standard Bank KZN Business Growth Awards for 2006 and last year was ranked
fourth in the Financial Mail`s Top JSE-listed Empowerment Companies and top BEE
JSE-listed Company in the Health Sector.
When awarding the upgrade contract, Edwards said Enaleni had consulted with
pharmaceutical engineering companies locally and internationally and had awarded
the contract to CTC Tech, one of India`s leading manufacturing consultants who
have been involved in developing many FDA approved pharmaceutical manufacturing
plants.
Russell Curtis, Acting CEO of Durban Investment Promotion Agency (DIPA) says:
"The City of Durban is proud to have the highly successful, JSE-listed Enaleni
Group headquartered in our region. We are pleased to have played an early and
very small part in supporting their phenomenal growth and will continue to offer
this important industry with truly empowered players like Enaleni our focused
attention. We congratulate the passionate management team & their partners as
they make this excellent announcement, and we wish the Enaleni team all the
best."
Ends
Issued by:
Ros Walsh
Communications Manager
Enaleni Pharmaceuticals Ltd
Tel: 031 451 3800
Cell: 082 920 3398
Email: ros@enaleni.com
Date: 26/02/2007 16:42:57 Produced by the JSE SENS Department.
