Hikma Pharmaceutical plans to acquire the Egyptian Company for Pharmaceuticals & Chemical Industries (EPCI), according to a Wednesday press release issued by the UK-based multinational.
The company said it would pay LE142.4 million (approximately $22.2 million) for the Egyptian pharmaceutical firm.
Hikma attributed its decision to buy EPCI to the fact that the Egyptian pharmaceutical market represents one of the largest and fastest growing markets in the Middle East/North Africa region.
"Since we entered the Egyptian market in 2007, we have been rapidly growing our presence," Hikma CEO Said Darwazah said. "This acquisition will further accelerate that growth, expanding our product portfolio and adding additional manufacturing capacity and technologies."
IMS Health, a leading provider of information, services and technology for the healthcare industry, estimates that the private retail market in Egypt – currently valued at around $2.3 billion – grew by 10.6 per cent in the 12 months to June 2012.
Hikma, which is listed on the London Stock Exchange, first entered the Egyptian pharmaceutical market in 2007 through its acquisition of Alkan Pharma in Egypt, now Hikma-Egypt.
Hikma-Egypt is currently the seventeenth largest pharmaceutical manufacturer in the country, with an estimated market share of 1.6 per cent.