News Column

Dubai Investments divests 66% stake in Globalpharma

June 27, 2014



Dubai Investments (DI) on Thursday announced the divestment of 66 per cent equity stake in its pharmaceutical subsidiary Globalpharma Company.



The Dubai-based investment firm, which is listed on the Dubai Financial Market, did not disclose the value of the deal in its filing to the bourse, but mentioned that the company will retain the remaining 34 per cent of the firm. The deal had generated an internal rate of return of 26 per cent over a ten-year period, it added.







French drug maker Sanofi will manage Globalpharma under the agreement and will also become the platform to manufacture and promote the generics portfolio of Sanofi in the Middle East markets.







In his comments, Khalid bin Kalban, Managing Director and CEO of Dubai Investments, said: "Our investment in Globalpharma was well timed as we capitalised on the rapid growth in the pharmaceutical sector in the region. With the direction and support of DI, the management executed a successful strategy which has attracted a lot of strategic interest. This created the opportunity for our successful sell-down."







"We believe that the new partnership being forged with Sanofi will propel Globalpharma to the next level of its growth," Kalban added. With a strong local footprint, Globalpharma will benefit from the wide-ranging Sanofi generics portfolio and pipeline as well as from the strong brand equity of Sanofi in the Middle East markets.







DI commercialised Globalpharma in 2003 and grew the company to become a market leader in certain therapies. Globalpharma is currently registered in more than 14 countries across the GCC, Middle Eastern and neighbouring markets. Globalpharma manufactures pharmaceutical products under CGMP conditions including antibiotics, cardiovascular, anti-ulcerants, painkillers, food supplements, vitamins, anti-diabetics, respiratory products and anti-allergic formulations. Globalpharma has achieved healthy double-digit growth year-on-year since 2010.







Kalban said: "The investment case for Globalpharma was compelling, as it was to operate in a pharmaceutical market which was expected to have uninterrupted growth in the region over coming years, driven by favorable demographics and increasing GDP per capita. The penetration of generic drugs manufacturing, which has historically been low in in the region, is now gradually increasing to European levels. We started Globalpharma and brought the right team and the right product mix. It is now time for a firm such as Sanofi, a global leader in pharmaceuticals, to take Globalpharma forward."







DI's divestment and agreement with Sanofi is first-of-its-kind in the Middle East Generics market that combines Sanofi's strong heritage of international quality treatments with a local trusted partner in generics medications Globalpharma to reach more patients with affordable medications. Globalpharma will be managed as a Sanofi company and will become the platform to manufacture and promote the generics portfolio of Sanofi in the Middle East markets.







Kalban said: "Dubai Investments has been at the forefront of identifying and implementing profitable businesses across sectors and markets. The divestment in Globalpharma is part of our strategy to continuously create value for our stakeholders."







abdulbasit@khaleejtimes.com




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Source: Khaleej Times (United Arab Emirates)


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