Julphar has acquired the Bangladesh-based RAK Pharmaceuticals, expanding its presence in South Asia.
Julphar, the generic drug manufacturer based in Ras Al Khaimah, said that it had completed a US$9.5 million deal with RAK Ceramics, the parent of RAK Pharmaceuticals, for a majority stake in the pharmaceutical unit.
“The size of the Bangladesh market alone provides huge investment opportunities, which can enhance the growing role of Julphar in the global healthcare industry,” said Ayman Sahli, Julphar’s chief executive. “RAK Pharmaceuticals is a relatively young, fresh company with solid infrastructure, growth rates and a healthy pipeline. We share the same vision of providing affordable, accessible medicines to people in regions that need it the most.”
In December, RAK Ceramics’ Bangladeshi unit approved Julphar’s offer to acquire 77.5 per cent of shares in RAK Pharmaceuticals and settle liabilities. Before the deal, RAK Ceramics Bangladesh had a 55 per cent stake in the drugs company.
The UAE’s largest ceramics manufacturer is offloading the asset as it focuses on its core products such as tiles, sanitary ware, faucets and tableware. Last month, it said it planned to sell RAK Laticrete, which manufactures tile installation systems and waterproofing products.
The 51.7 million shares in RAK Pharmaceuticals are expected to be transferred at a price of 7 Bangladeshi taka, or about 33 fils, per share, Reuters reported last year.
Also known as Gulf Pharmaceuticals, Julphar had Dh1.4 billion in sales last year. During the first half, Julphar had cash of Dh126m, down from Dh188m at the end of the six months ending June.
Julphar has 11 factories in the UAE and one in Ethiopia. It is constructing a new facility in Jeddah in partnership with the local Cigalah Group.
RAK Pharmaceuticals manufactures about 100 products such as tablets, capsules and syrups at its factory near Dhaka. The company had more than $5.7m in sales in 2013, representing growth of 24 per cent year-on-year.
There are 267 pharmaceutical companies, including six international ones, in Bangladesh that meet 97 per cent of the local generic-drug needs, according to a 2013 report from Manarat International University in Dhaka. The total sales figure for the sector that year was $1.2bn. The top 30 local companies control 80 per cent of the market.
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