John Royden, Head of Research
52 week high yield£18.00-£7.85
Hist / pros per39.2-31.7
Equity market cap£3,628m
NMC runs hospitals and chemist shops in the United Arab Emirates (UAE) with a 25% market share in a population that has grown from 200,000 in the 1960s to over ten million today. Health insurance is being mandated by legislation.
Their fertility clinics are growing sales at 20% per annum on a $8k per cycle price point. Their long term care beds for Arabia’s ageing population cost $500k per annum compared to $1 million in USA.
NMC’s Distribution division trades in pharmaceutical products and equipment and benefits from UAE laws which require a 51% locally owned business to distribute in the UAE. This gives NMC the negotiating power to contract for exclusive distribution rights for a broad range of medical products, such as Lipitor and Nivea.
NMC has expanded by acquisition as well as organically. Since 2012 the company has added 410 new hospital beds in three UAE based hospitals. This growth feeds through to the financials; 2015 revenues increased by 36.8% and EBITDA increased by 46.7%.
They are now branching out into Saudi Arabia and Europe with the latter appearing to be an extension to their fertility clinics designed to allow couples to dodge the Islamic restrictions on donors.