Multinational pharma group Hikma Pharmaceuticals has agreed to acquire the entire issued share capital of Egyptian pharmaceuticals company Alkan Pharma for a cash consideration of US$60.5m (EGP 342m).
The acquisition is scheduled to complete in the second half of 2007, subject to meeting certain regulatory requirements.
Alkan develops, manufactures and markets generic pharmaceuticals in both solid and liquid form for the Egyptian market. The company has 175 registered pharmaceutical products, including nearly 60 products under licence from leading multinational pharmaceutical companies. In addition, it has 140 products pending registration. The product portfolio spans a number of therapeutic categories, including alimentary and metabolic, musculoskeletal and infectious disease.
Alkan's sales and marketing infrastructure includes more than 200 staff and operates across Egypt. The company's manufacturing facilities operate to a high standard and are routinely audited by local Egyptian health authorities as well as by its multinational licensing partners.
Alkan has seen its sales grow by 18% and 34% in the past two years respectively; net sales in 2006 reached $14.6m (2005: $10.9m) and profit before tax was $3.5m (2005: $1.5m).
"Alkan's local manufacturing capabilities, strong product portfolio and registration pipeline, together with its significant sales force, provides Hikma with an excellent platform from which to access the large and growing Egyptian market," said Darwazah, ceo of Hikma.
"Alkan offers a strong commercial and distribution platform from which to introduce Hikma's branded generics into the Egyptian market and adds a broad product portfolio and pipeline that can be leveraged into Hikma's existing markets."
The Egyptian pharmaceutical market was worth approximately $2.2bn in 2005, making it the second largest regional pharmaceutical market after Turkey.
In the five-year period ending in 2005, the Egyptian pharma market grew at a compound annual growth rate of approximately 5%. The market is expected to continue to grow, given the favourable economic environment, its large and growing population, increased health awareness and an expanding public health insurance coverage.
