Hikma buys 98.09% of EUPSeptember 14, 2015
Hikma Pharmaceuticals PLC, a multinational pharmaceutical group, has agreed to acquire 98.09% of the share capital of EIMC United Pharmaceuticals (EUP) from a consortium of shareholders.
Hikma said in an announcement on September 8, 2015 acquiring EUP would strenghten its position in the large and fast growing Egyptian market.
EUP is a pharmaceutical manufacturing company specialising in oncology products. The company said that the acquisition of EUP brings an attractive portfolio and pipeline in the key strategic areas of oncology and injectables, with the potential to add around 50 products by 2020. Hikma also said the acquisition added a manufacturing facility in Egypt, with both oral and injectable lines. Furthermore, it leverages Hikma’s established market position in Egypt and strong sales and marketing team.
Hikma remarks that the Egyptian pharmaceutical market is one of the three major pharmaceutical markets in the Middle East and North Africa (MENA).
Hikma refers to IMS Health, the private retail market is valued at around $3.8 billion and grew by 8.3% in the twelve months to June 2015.
Hikma says that Hikma Egypt is currently the eleventh largest pharmaceutical manufacturer in Egypt, with an estimated market share of 2.0%.1
Commenting on the transaction, Mazen Darwazah, Hikma Vice Chairman and CEO of MENA said, “Egypt is a very important market for Hikma and we have been rapidly growing our business there over the last few years. Acquiring EUP will further strengthen our market position and be a key driver of future growth. Across the Group, expansion in the areas of oncology and injectables are key strategic priorities and I am very pleased to be developing our capabilities in the MENA region.”
HC Securities and Investment, the Cairo-based investment bank, acted as advisor to Hikma on this acquisition. Hikma notes that the transaction is subject to certain regulatory approvals and closing conditions.