Julphar, the UAE's bluechip pharmaceutical and drug maker has generously stepped up its shareholders' returns in the form of both cash dividends and shares offering.

For the year 2007, existing shareholders will receive a 10 per cent cash dividend and five per cent free shares as bonus, said a company official.

In UAE's competitive market of 216 pharmaceutical manufacturing firms, Julphar has made a 2007 net profit of Dhs204 million from a turnover of Dhs676 million.

"This has been our largest and biggest turnover since inception," said Abdul Razzaq Yousef Chief Executive Officer to Gulf Today. The company has 415 products registered in the UAE and in 47 countries worldwide. Its pain relief ointment, MEBO is earning tremendous sales in over 20 countries. To keep up with its demands, Julphar plans to build specific factories investing over Dhs50 million.

In its ambitious plans to be the number one in the GCC and eventually the Mena region, Julphar is working on its strategies of catering to the Dhs32 billion market in the Mena region, out of which the UAE market is Dhs1.8 billion and Saudi is Dh8 billion. The company plans to set up another seven plants to meet the growing demand, where in the GCC 80 per cent of pharmaceuticals and drugs are substituted by imports.

"To support our continuous expansion plans we are investing 4 per cent of our turnover in research and development (R&D) and for acquiring licensing for manufacturing," Yousef said. Julphar's ambitious plans is to triple sales turnover to Dhs2.2 billion with a net profit of Dhs340 million for the year 2012 and to increase its capital to Dhs1 billon company, from its present Dhs610 million, Yousef said, when queried about the Julpharís ambitious plans.

Julphar, which is listed on the Abu Dhabi Stock market, is contemplating a stock option of a $100 million capital during 2008 to be converted into shares, subject to the board and general assembly. Julphar, which owns seven manufacturing plants, plans to build another seven at an estimated investment of Dhs22 billion in three years, as part of its expansion and development.

The company intends to raise Dhs400 million in a part rights of Dhs1.75 per share and part convertible stock option at Dhs3.2 a share, generating Dhs800 million, which is likely to cover the expansion cost of building the seven plants, Yousef said.

BY MICHAEL FISHER