Hikma Buys 63.9% Stake in Morocco’s Promopharm as Start of Takeover Bid
Firm claims acquisition will bolster growth in fourth largest MENA pharma market.!--h2>
Hikma paid an aggregate of $111.2 million to acquire a 63.9% stake in Moroccan pharma firm Promopharm (Société de Promotion Pharmaceutique du Maghreb). A mandatory tender offer will also be launched to acquire the remainder of Promopharm. Hikma says its takeover of Promopharm will bring in an additional $45 million-plus in annual revenues and provide substantial local manufacturing capabilities.
The firm also expects the deal to act as a launchpad for Hikma products in Morocco and to provide opportunities for the growth and introduction of Promopharm’s existing product portfolio both in Morocco and additional markets.
“Establishing ourselves as a local manufacturer in Morocco completes our MENA (Middle East and North Africa) footprint,” comments Said Darwazah, Hikma CEO. “Entering the Moroccan market has been a strategic priority for Hikma for some time. Promopharm’s impressive product portfolio and its high-quality manufacturing capabilities bring exciting growth opportunities for our combined business, both in Morocco and across our other markets in MENA.”
Promopharm is the ninth largest manufacturer of pharmaceuticals in Morocco, with a 3.5% market share and a portfolio of some 200 branded generic and in-licensed products spanning multiple therapeutic fields, Hikma claims. The Moroccan pharmaceuticals market , meanwhile, represents the fourth largest pharmaceutical market in the MENA region and was worth some $1.7 billion (in retail value) last year, with a projected CAGR of about 9% over the next three years, the firm adds.
Hikma’s own branded pharmaceuticals business is already focused on MENA territories. About 20 products covering infectious, CNS, and cardiovascular diseases as well as diabetes have been earmarked for distribution in the Moroccan market. The firm says Promopharm’s sales and marketing team of 135 personnel will complement its own operations across MENA territories.
On the manufacturing side Promopharm ’s capabilities span a range of formulations, and the firm operates a dedicated anti-infectives facility for oral penicillin. Acquisition of the Promopharm will provide Hikma with local manufacturing capacity and new capabilities for the production of eye drops and effervescent formulations.