Seven Strategies for Establishing Effective Collaboration Between the Pharmaceutical Industry and the Stock Market

The 10th Iran Pharma Exhibition, organized by the Syndicate of Owners of Iran’s Human Pharmaceutical Industries and supported by the Ministry of Health and Medical Education, focused on addressing challenges, resolving obstacles in pharmaceutical production, and fostering collaboration through joint meetings.

According to the Public Relations Department of Shahr Financial Group, during a session titled “Examining Challenges and Solutions for Financing in the Pharmaceutical Supply Chain” at the 10th International Iran Pharma Exhibition, topics such as liquidity shortages and foreign exchange fluctuations were critically discussed. Effective financing solutions were explored with representatives from the Syndicate of Owners of Iran’s Human Pharmaceutical Industries, the Tehran Chamber of Commerce, the Securities and Exchange Organization, and the Central Bank.

In this session, Dr. Ali Bigzadeh, CEO and board member of Shahr Financial Group, addressed existing challenges in the pharmaceutical industry, including the minimal level of free-float shares, limited diversity in ownership structures, and high dividend payouts by these companies.

Additionally, the former CEO of Tamadon Investment Bank proposed several strategies to establish a robust connection between the pharmaceutical industry and the capital market. The key recommendations presented include the following:

1. Establishing a specialized pharmaceutical factoring fund to inject liquidity, reduce the time for receivable collections, and decrease reliance on bank loans.
2. Creating dedicated financial institutions for the pharmaceutical industry.
3. Forming a public joint-stock project company with a board of founders comprising major players in the pharmaceutical sector.
4. Organizing financial clinics and advisory sessions for pharmaceutical companies.
5. Issuing foreign currency-denominated Murabaha bonds.
6. Implementing foreign currency-based crowdfunding.
7. Establishing private equity (PE) funds for strategic investments in pharmaceutical companies with high potential.

These initiatives aim to serve as a strong starting point for fostering effective collaboration between the pharmaceutical industry and the capital market.

 

News source:

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