Ahead of its initial public offering, pharmaceutical distributor RA Williams Distributors Limited has unveiled plans to emerge as a leading player in the pharmaceutical distribution sector.
What began as a small retail pharmacy in Chapelton, Clarendon has evolved into a substantial 21,000 square-feet facility serving 710 customers, including 447 pharmacies, 31 hospitals and medical centres, and 232 medical practitioners across the island.
Over the past two years, RA Williams has achieved remarkable growth, with revenues soaring from $1 billion in 2022 to over $1.4 billion in 2023 —an increase of 41.6 per cent. This success stems from the company’s strategic efforts to enhance market penetration and product availability over the last 12 years.
Sagicor Investments Jamaica is the lead broker and arranger of the IPO for RA Williams. Stuart South, Manager of the Capital Markets Unit at SIJ, highlighted that going public will enable RA Williams to utilise the proceeds from its IPO to support its expansion plans.
He explained that the funds will facilitate debt reduction, enhance cash flow, and ultimately strengthen the company’s financial position. South emphasised that the company’s success over the past 12 years —growing sales to approximately $1.5 billion for the year ended April 2024 — has largely been funded through retained earnings and short-term loans.
At the investor briefing on Monday, July 15, RA Williams’ CEO, Audley Reid, shared with attendees that the company has expanded from offering a single product to providing over 130 products sourced from 10 international pharmaceutical manufacturers.
“Achieving a billion dollars in revenue in 2022 —our 10th year in business —was a significant milestone for us. It reflects the hard work of our entire team and our commitment to delivering access to quality and affordable healthcare,” Reid stated.
Audley Reid (left), CEO of RA Williams Distributors Limited engages Tracy-Ann Spence (second right), Executive Vice President and Chief Investment Officer at Sagicor Group Jamaica in conversation during the RA Williams Distributors Investor Briefing, supported by Sagicor Investments Jamaica on Monday, July 15, 2024, at the AC Hotel. Sharing in the moment from left are: Evelyn Williams, Chief Quality Officer & Co-Founder at RA Williams Distributors Limited (second left) and Stuart South, Manager, Capital Markets Unit, at Sagicor Investments Jamaica.
The company also attributes its success to its expert board. Should it succeed in being publicly listed, RA Williams will become the only such public pharmaceutical distribution company, with over 50 per cent of its board comprised of registered and practising pharmacists. It is this expertise that has led to strategic partnerships formed with top international pharmaceutical manufacturers, such as Aristopharma Limited from Bangladesh, Square Pharmaceuticals, Indus Life Sciences, and several others, that have allowed the company to expand its product lines, meeting the pharmaceutical needs of Jamaicans islandwide.
Aiming to build on this success post-IPO, the Jamaican company has entered into an agreement with Fourrts (India) Laboratories Pvt Ltd. and Mankind Pharma Ltd. to introduce innovative treatment options to the Jamaican market, further boosting its revenue.
The new treatment options will target areas that require anti-infectives, used to fight infections caused by bacteria and viruses, and dermatological treatments, to address a range of skin conditions and diseases.
“In 2023, we hit a remarkable revenue milestone, and we now have our eyes set on a $2 billion goal,” Reid announced. “What we are doing here is part of the preparation to continue the accelerated growth path that we are on. We are not just looking to grow for growing sake. We are intentional, and we want to do it in a sustainable way.”
Once successfully admitted to the Junior Market, RA Williams intends to initiate a 25 per cent dividend payout alongside investments in working capital.
