Three merged local pharmaceutical companies list on Ghana Stock Exchange

The Ghana Stock Exchange on Wednesday listed Dannex Ayrton Starwin Plc on its official list, following the merger of the three local pharmaceutical companies.

With the listing, Ayrton and Starwin, which hitherto traded on the Exchange individually had been delisted.

The merged entity, which will now trade on the Exchange as DAS Pharma, would become the largest local pharmaceutical manufacturing company in Ghana with a portfolio of 80 plus products.

It will also have a wide distribution network cutting across the entire country with over 2,000 active wholesale and retail customers in its network, and a staff strength of over 600.

Speaking at a ceremony to list the shares, Mr Daniel Apeagyei Kissi, Chief Executive Officer Dannex Ayrton Starwin Plc, said the synergies derived from the merger would enable the company to improve operating efficiency, optimize costs, and improve its offering to customers and consumers.

It will also enable the company to grow volumes and profitability and thus achieve its growth ambitions and maximize shareholder value.

“We will invest in the business to strengthen our footing in Ghana and expand into the rest of West Africa and beyond,” he said.

Mr Kissi said Dannex Ayrton Starwin Plc was ready to respond to the changing dynamics in the pharmaceutical industry, including changing consumer and customer needs, vertical integration by players, dealer own brands on the market and the advent of online pharmacies, among others.

“All of these are changing dynamics which Dannex Ayrton Starwin Pic is well placed to respond to and take advantage of to make even greater history,” he said.

Mr Nik Amarteifio, Chairman Dannex Ayrton Starwin Plc, described the listing as historic, saying it was the first time in Ghana’s business history that there had been a merger of three indigenous companies at the same time.

He said the companies had to merge because of the changing business landscape in order to survive the future.

It is expected that tangible synergies would be created from the merging of administration, procurement and production operations, he said, adding that the company would increase the breadth of technical capabilities to ensure the optimal development of organic growth opportunities.

These growth opportunities would further be propelled by the increased production volumes to be driven by the expansion in factory capacity and distribution capabilities.

The combined market capitalization would be enough to attract potential investors to help boost our growth agenda. Discussions are far advanced with a number of investors, including a sovereign and health-oriented funds, Mr Amarteifio added.

On his part, the Managing Director of the GSE, Ekow Afedzie it was the first time that two listed local companies had merged with a non-listed one to list on the GSE.

Mr Afedzie said the merger brings the market capitalisation for the new entity to GHC 33 million.

He commended the management of the DAS Plc for the decision to list on the GSE, saying it would help the company to raise more capital through bonds and right issue to finance and expand its operations.

Mr Afedzie encouraged local companies seeking to expand their operations to look to the GSE to raise the needed capital to finance their business activities.