Julphar, which has about AED 801 million ($218 million) of debt, is under increasing pressure after Saudi Arabia’s Food and Drug Authority banned its products for failing to meet regional standards in September 2018.
Monday 08, July 2019
UAE-based Julphar has replaced most of its top management, appointed new board members as well as cut about three per cent of its workforce as it comes under an increasing financial strain, reported Bloomberg.
Gulf Pharmaceutical Industries plans to hire a restructuring adviser after cutting jobs as the ban on the medicine maker’s exports to Saudi Arabia weighs on its finances.
Jerome Carle, the Chief Executive Officer of Julphar, said, “A small proportion of staff were affected by a modest restructuring and all key positions have been filled, the company will soon announce its new executive team and is working with consultancy firms to help optimise the business.”
“We are currently in the process of undertaking a voluntary reorganisation of the company, Julphar’s leadership team has been conducting a comprehensive review of all areas of our business to identify cost savings,” Carle said.
The company recalled about half a dozen products, including cough syrup and mouthwash, to address concerns raised by health authorities and faced political turmoil as well as currency devaluations in some of its markets.
“While now largely behind us, the impact of the suspension in Saudi Arabia will continue in 2019, challenges still lie ahead but we are taking steps to strengthen our financial health as part of a new far-reaching strategy that will see us increasing our effectiveness and efficiency,” added Carle.