Moroccan pharma tycoon Lamia Tazi faces $3.35 million loss as Sothema shares dip

Feyisayo Ajayi -
Key Points
  • Lamia Tazi has lost $3.35 million as her 8.19% stake in Sothema dropped 5.21% over 12 days, reflecting market volatility.
  • Sothema’s stock has declined from MAD 1,055 ($108.87) to MAD 1,000 ($103.20) within 12 days, significantly impacting Tazi's investment.
  • Despite short-term losses, Sothema’s shares have increased by 7.25% year-to-date, showing overall resilience in Morocco’s pharmaceutical market.

Lamia Tazi, a leading figure in Morocco’s pharmaceutical industry, has seen a sharp decline in the value of her investment in Marocaine Ste de Therapeutique (Sothema), resulting in a $3.35 million loss. This downturn comes amid a broader slump in Sothema's share price, impacting Tazi’s substantial stake in the company.

Tazi, who holds an 8.19 percent stake in Sothema, equivalent to 589,658 shares, has seen her investment decline from MAD622.09 million ($64.20 million) on Sept. 10 to MAD589.66 million ($60.85 million) as of Sept. 22.

Over the past thirteen days, Sothema's stock has fallen by 5.21 percent, decreasing from MAD1,055 ($108.87) to MAD 1,000 ($103.20). This decline has resulted in a loss of MAD 32.43 million ($3.35 million) for Tazi.

Market challenges

The recent downturn is compounded by a more extensive loss that occurred between June 19 and July 16, when Tazi's holdings declined by $61.78 million, from MAD 607.35 million ($61.78 million) to MAD 563.12 million ($57.28 million). This significant decline raises questions about the sustainability of Sothema's growth amidst shifting market conditions.

Sothema, Morocco’s leading healthcare company, manufactures approximately 60 million pharmaceutical units annually and has established partnerships with 35 multinational laboratories. The company’s products are exported across Europe, the Maghreb, Sub-Saharan Africa, and the Persian Gulf, reflecting its pivotal role in the regional healthcare supply chain.

Year-to-date performance

Despite recent losses, Sothema’s shares have shown resilience over the year, with a year-to-date increase of 7.25 percent. An initial investment of $100,000 at the start of the year would now be valued at $107,246, indicating a gain of $7,246. This highlights the company’s overall financial performance, suggesting that while Tazi faces immediate losses, the long-term outlook may remain positive if market conditions stabilize.

As Lamia Tazi navigates these challenges, the impact of her investment decline underscores the volatility inherent in the pharmaceutical sector, particularly for stakeholders with significant equity positions in major firms like Sothema.