Julphar survived recalls and a Saudi export ban to return to profit in 2021

Julphar, one of the Middle East and Africa's largest generic-drug makers and an ADX-listed company, was hit from 2018 by product recalls stretching from cough syrups to mouthwash, followed by the departures of its CFO and CEO and a September 2018 ban by Saudi Arabia's food and drug authority on its exports to the region's biggest pharma market.

With debt near Dh817m and a second-quarter 2019 net loss of Dh94.8m, the board launched a transformation: a new chief executive, a new chief commercial officer, about 150 job cuts, and a 2020 capital restructuring that reduced capital by Dh503m to extinguish historic losses, then raised Dh500m in a rights issue that was 2.3 times oversubscribed.

By 2020 the import bans in Saudi Arabia, Bahrain, Oman and Kuwait were lifted after GMP audits, and Julphar signed an agreement to sell its Bangladesh business. In July 2021 it bought the remaining 60% of Planet Pharmacies. Revenue doubled to AED1.14bn in 2021 and the company returned to profit: AED63.9m net profit versus an AED241.6m operating loss in 2020, with after-tax profit of AED59.4m against a AED317.4m loss.

Revenue doubled to AED1.14bn in 2021, net profit swung from a AED241.6m operating loss to AED63.9m, and net equity rebuilt to AED1.07bn.

New leadership, cost cuts and the capital restructuring extinguished accumulated losses and reset the balance sheet.

Divesting non-core assets such as the Bangladesh business and buying Planet Pharmacies refocused the group and added a retail channel.

Passing GMP audits reopened Saudi Arabia and neighbouring markets, doubling 2021 revenue.

After a quality and regulatory crisis, the fix is structural: new leadership, write-downs, divesting non-core units and restoring compliance before chasing growth again.

Julphar entered 2022 cash-flow positive, planning more than 15 product launches and rebuilding its in-house R&D function. The turnaround showed how a Gulf drug maker restores credibility after quality and regulatory failures.