Investors are flocking to pump huge investments in the pharmaceutical and health care sector in Egypt, as the past period has witnessed many acquisition offers, whether on pharmaceutical companies, laboratories or hospitals, the most prominent of which was Glaxo Group receiving three offers to acquire its unit in Egypt, “GlaxoSmithKline”, which is An indication of the sector’s high profitability and attractiveness.
Egypt is the largest producer of medicines and pharmaceuticals and the second largest consumer in the Middle East and Africa, with a compound annual growth rate of 19% from 2013 to 2019, which outperforms the annual growth rate in the region at 8%.
The sales of pharmaceutical companies will likely reach 128.6 billion pounds (8.23 billion dollars) in 2021 compared to 116.1 billion pounds (7.4 billion dollars) in 2020. Retail sales alone may reach 87.3 billion pounds (5.6 billion dollars) in 2021, with an annual growth of 12.5%. In 2021. The Covid-19 pandemic had a significant impact on the sector’s revenues in April and May of 2020 before it recovered from June 2020.
The unit of Glaxo Group in Egypt has become a coveted thing for investors, as the company received three offers to acquire its unit in Egypt, “GlaxoSmithKline”, the first of which was from Hikma Pharmaceuticals plc, with which it signed a non-binding basic conditions memorandum at the end of last month, with the aim of its acquisition. Potential on the majority shareholder in GlaxoSmithKline of 91.2% by submitting a mandatory bid for 100% of all shares.
Under the memorandum, the prospective deal includes the potential acquisition of other investments related to consumer health and the pharmaceutical trade in Egypt, in addition to the pharmaceutical trade in Tunisia, which is affiliated with the GlaxoSmithKline Group. According to the company, the basic conditions memorandum does not represent an agreement between the parties on the price or terms of the potential deal and is a preliminary step in negotiations.
GlaxoSmithKline’s revenues increased by 18.8% during the first nine months of 2020 to reach about $ 91 million, while its net profit jumped by 51.3% to $ 6.48 million.
And Bloomberg Agency reported in November 2020 that the two sovereign wealth funds, the Public Investment Fund in Saudi Arabia and the Abu Dhabi Development Holding Company (ADQ) in the UAE, are seeking to buy Amoun Pharmaceuticals in Egypt, which is affiliated with Bausch Health.