Khimpharm JSC (SANTO)

SANTOLINA has embellished the coat of arms of the town Shymkent since the 21of April 1909.

Santonin is a drug which was widely used in  the past  to expel parasitic worms from the  body,  by  either  killing  or  stunning them.  Nowadays  Santonin  is  no  longer registered as a drug in most countries.

(3S,3aS,5aS,9bS)-3,5a,9-trimethyl-3a,5,5a,9b-tetrahydronaphtho[1,2-b]furan-2,8(3H,4H)-dione

(3S,3aS,5aS,9bS)-3,5a,9-trimethyl-3a,5,5a,9b-tetrahydronaphtho[1,2-b]furan-2,8(3H,4H)-dione

Brand since 1993…

Impetuously developing company, equipped with modern abroad equipment, having new modern technologies in the system of operating production and in marketing

VISION

Health is the base of any person's happiness.

Using the best technologies, the best raw materials and the best specialists we produce effective drugs of high quality at acceptable prices for strengthening people's health and improving life quality in order to give a person an opportunity to feel better, to do more and to live longer.

MISSION

20 hectare  area for the main and auxiliary productionspare areas for further developmentthe necessary communicationsown boiler - house and chink5 main workshopsresearch laboratory

PRODUCTION BASE

200  denominations  of  generic and original remedies in the form of  capsules,  tablets,  injection solutions  in  ampoules,  syrups, infusions,  oil,  water  and  alcohol solutions  of  24  pharmacological groups. 

PRODUCT PORTFOLIO

Market share

over 50% of domestic drug production in Kazakhstan

Karaganda Pharmaceutical Plant Almaty Pharmaceutical Plant

MAIN COMPETITORS:

EXPORT TO:Uzbekistan, Kyrgyzstan, Tajikistan, Azerbaijan, Georgia, Russia, Ukraine, Armenia.

Polpharma is the majority shareholder since September 2011

New brand name

$ 85 million investment is only the "first phase"

compliance with good manufacturing practice (GMP) standards

access to over 300 products already in Polpharma's portfolio, and 400 products being developed - mainly in the gastrological, neurological and cardiology therapeutic areas - as well as oncology and biotech drugs.

KhimPharm gains the higher level of competitive advantage.

STRENGTHS

long 100-years historyhigh developed production basebroad product mixexperienced and professional specialistshigh market share 

WEAKNESSES?

NO!

Access to investmentsState programState procurementCustom UnionGood manufacturing practice (GMP) standards so it can enter to international marketThe advanced training for personnel  

State  program  for  the  development  of  the pharmaceutical  industry  for  2010-2014 operating  in  Kazakhstan:  in  2014, Kazakhstan’s  production  of  medicines  will cover at least 50% of its own market.

SK-Pharmatsiya LLP is a single centralized  distributor  for supplying  pharmaceuticals  to State  health  institutions.  The share  of  pharmaceuticals bought  through  the  single distributor  system  will gradually  increase,  reaching 70-80% by 2012. 

as  of  2014,  customs  fees  for pharmaceutical  imports  from  third countries  will  be  increased  first  to  5% and then in 2015 to 10%. In  2012,  Kazakhstan,  Belarus,  and Russia will  adopt documents on mutual recognition of medicine registration

CUSTOM UNION

opportunity of international expanding

ADVANCED TRAINING FOR PERSONNEL

Profitability ratios:

Items Years

2006 2007 2008 2009 2010

ROE 0,05 0,02 0,10 0,11 0,19

ROS 0,16 0,14 0,16 0,20 0,22

ROA 0,02 0,01 0,04 0,06 0,11

Gross margin rate 0,36 0,35 0,35 0,40 0,41

Liquidity ratios:

Items Years

2006 2007 2008 2009 2010

Current ratio 0,73 0,75 0,79 1,04 1,48Acid Test or Quick Ratio 0,29 0,29 0,32 0,42 0,81

Asset management ratios:

Items Years

2006 2007 2008 2009 2010

AR turnover 4,69 4,71 4,66 5,57 3,73

Days in AR 76,84 76,47 77,22 64,68 96,53

Inventory Turnover 1,78 1,87 2,12 2,29 2,78

Days in Inventory 201,86 192,04 170,11 157,55 129,43

Days in AP 87,25  91,73 32,12 28,75 65,57

Operating expenses 0,14 0,10 0,08 0,11 0,12

Sales growth   0,25 0,18 0,41 0,34

Working capital:

Working Capital Years

2006 2007 2008 2009 2010

Total LT financing 5 923 978 6 385 193 6 575 661 8 997 608 10 748 766

Total LT investment 5 594 050 5 553 493 6 117 455 5 853 987 6 470 873

Working Capital 329 928 831 700 458 206 3 143 621 4 277 893

Operating cycle needs Years

2006 2007 2008 2009 2010

Total financing of operation 618 369 748 263 320 932 369 914 999 436 Total investments in operation 2 077 431 2 326 617 2 509 905 3 035 164 4 327 967

Operating cycle needs - 1 459 062 - 1 578 354 - 2 188 973 - 2 665 250 - 3 328 531

Working Capital 329 928 831 700 458 206 3 143 621 4 277 893

Operating cycle needs - 1 459 062 - 1 578 354 - 2 188 973 - 2 665 250 - 3 328 531

Difference - 1 129 134 - 746 654 - 1 730 767 478 371 949 362

Cash flow ratios:

Items Years

2006 2007 2008 2009 2010Interest coverage ratio 1,03 2,81 2,80 1,29 6,92Capital Cost Coverage ratio 1,03 2,81 2,79 1,29 6,92Paid Debt Coverage ratio 0,07 0,29 0,28 0,36 0,69

Total Coverage Ratio 0,07 0,27 0,25 0,28 0,63

Current Liabilities Coverage Ratio 0,11 0,42 0,36 0,48 0,86

Items Years

2006 2007 2008 2009 2010Cash Flow Yield 0,54 1,89 1,21 0,88 0,80

Cash flow to sales 0,09 0,26 0,20 0,18 0,18

Cash flow to asset 0,03 0,13 0,11 0,13 0,14

Items Years

2006 2007 2008 2009 2010 Equity/Debt ratio 0,72 0,78 1,19 1,38 2,88 Equity/Assets 0,33 0,34 0,46 0,51 0,60 Debt/Assets 0,47 0,44 0,39 0,37 0,21

Debt ratios:

Leverage ratios:

Items Years

2006 2007 2008 2009 2010Financial leverage ratio (Debt/equity) 1,40 1,27 0,84 0,73 0,35

Based on everything I know about this company and its strategies, the industry and the competitors, and the external factors that will influence the company in the future, do I think this company is worth investing in for the long term? YES.

CONCLUSION