Gulf Pharmaceutical Industries, the drug maker known as Julphar, said it sold its Dubai-based subsidiary Gulf Inject in a bid to focus on its core product portfolio and to strengthen its business.
The 100 per cent stake in Gulf Inject, a local manufacturer of intravenous fluids, was sold to GlobalOne Healthcare, a healthcare division of Abu Dhabi's Yas Holding, Julphar said in a statement on Sunday to the Abu Dhabi Securities Exchange, where its shares are traded.
“This deal is in the best interest of Julphar and our shareholders as we intend to maximise value with a strategy that continues to focus on the large and growing core areas of the company,” said Sheikh Saqer Al Qasimi, chairman of the board.
"Since its establishment in 1994, Gulf Inject has developed into a leading IV fluids player in the region and achieved a very successful turnaround of its business in recent years. We are confident that under the new ownership, this growth strategy will be taken to the next level.”
Julphar is a manufacturer of largely generic drugs. It also makes insulin for diabetics and a range of personal care products. The company employs more than 2,400 people and distributes pharmaceutical products to more than 50 countries across the globe.
The company did not disclose the total value of the transaction but said the deal will have a positive impact on its third-quarter financial results.
"We are working on expanding the base of our generic pharmaceutical portfolio to include new and more complex combination products and biological technologies, encouraging innovation and promoting the production of innovative medicines locally,” said Essam Mohamed, chief executive of Julphar.
The latest divestment reduces the total consolidated assets of the group by 3 per cent to 4 per cent as of June 30, it said in the statement.
In July, the company also acquired 100 per cent of Dubai-based pharmaceuticals distribution company Planet Pharmacies to grow its business in the region.
Julphar, which previously held a 40 per cent stake in Planet Pharmacies, bought the remaining 60 per cent stake from Kamco Invest to complete the deal.
The Ras Al Khaimah-based company reported lower losses last year as revenue rose on the back of successful marketing strategies in neighbouring countries including Saudi Arabia, Oman, Bahrain and Kuwait.
The UAE's economy is expected to grow 2.4 per cent as the country gradually recovers from the pandemic-induced headwinds, according to the Central Bank of the UAE.