Ras Al Khaimah: Gulf Pharmaceutical Industries (Julphar) may convert to a holding company, according to a top official.

Shaikh Faisal Bin Saqr Al Qasimi, the company's chairman said the move was aimed at diversifying the company's investments.

The announcement was made during Julphar's annual meeting, at which a 10 per cent shareholder cash dividend was approved.

Shaikh Faisal said Julphar will issue eight million shares this year to the country's pharmacists and physicians in appreciation for their efforts.

Julphar has begun construction of two new integrated production lines, known as Julphar eight and nine which will produce antibiotic powders and ointments.

The two new plants are expected to be operational by the end of the year, and the combined capacity of each factory will be 50 million units.

Investment

The company is investing Dh120 million in the factories, which bosses hope will help boost sales by Dh210 million.

Shaikh Faisal said Julphar construction work for two more factories will start next month. These two, called Julphar 10 and 11, will specialise in biotech products.

The new plants are set to be operational by June 2009 with a capacity of 37 million units a year.

He said within three years of commercial production, an additional Dh457 million would likely to be added to the Ras Al Khaimah company's sales figures.

Shaikh Faisal said the company's shares were oversubscribed, despite non subscription of major shareholders.

He added that the second phase of the share subscription will start on April 8 and the formal offer to subscribe to the increase of 20 per cent of the increased capital will be made on the basis of the number of shares held on March 29.

He added that the unsubscribed shares will be allotted to those desiring to acquire them.

The subscription period will be open until April 19.