Hikma to acquire Egyptian drug co for $2.2 mln

Manufacturer of branded and non-branded generic and in-licensed pharmaceutical products Hikma Pharmaceuticals Plc has agreed to acquire Egyptian Company for Pharmaceuticals & Chemical Industries for $22.2 million in cash to strengthen its position in the Egyptian market.

The acquisition of EPCI will add a portfolio of 35 products in 46 dosages and strengths including three cephaslosporin anti-infection brands for the local market.

The global drug maker expects to complete the purchase before Feb 14. 

Said Darwazah, Hikma CEO, said, “Since we entered the Egyptian market in 2007, we have been rapidly growing our presence.” Mr. Darwazah also said, “This acquisition will further accelerate that growth.” Hikma said, the drug market of Egypt is one of the largest and fastest growing markets in the Middle East and North Africa.

The private retail market is worth about $2.3 billion and grew by 11% in 12 months to June 2012. 

Analysts James Vane Tempest and Peter Welford of Jefferies International Ltd said, the acquisition improves Hikma’s long-term prospects in the region, and should further boost investor confidence that Hikma can deliver on its acquisition strategy.

Cairo-based HC Securities & Investment acted as adviser to Hikma on the deal.

Hikma Pharmaceuticals is a multinational pharmaceutical company based in London. It manufactures branded and non-branded generic and in-licensed pharmaceutical products. The company was first listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

Hikma was founded in Amman, Jordan in 1978 by its current Chairman, Mr. Samih Darwaza.