Tuesday 7 June 2022
Indian pharmaceutical company Marksans Pharma has signed an agreement to acquire Dubai-based marketing and promotion company Access Healthcare for Medical Products LLC for AED 13 million in an all-cash deal. The acquisition will be funded from internal accruals, according to Marksans Pharma.
Access Healthcare provides pharmaceutical companies with marketing and sales solutions in the Middle East and North Africa (MENA). In the UAE, the company supplies products through the Dubai Health Authority and has market authorizations by the UAE regulatory authorities for various products.
For the year ended December 2021, Access Healthcare had revenues of AED 12 million and a profit after tax of AED 4.5 million. The company has no debt on its books.
The deal will enable Marksans Pharma to use the front-end sales and distribution infrastructure of Access Healthcare for marketing its products manufactured in India, the UK, and the USA.
It will also bolster the Indian company’s presence in the MENA region by leveraging Access Health's knowledge of local business cultures and access to a regional network of partners and distributors.
Overall, the acquisition is expected to enable Marksans Pharma to meet its goal of reaching INR 20 billion (USD 275 million) in revenues, improving its margins over the next couple of years and delivering superior returns to its shareholders.
Dubai is currently home to more than 30 pharmaceutical manufacturers, while the market value of the emirate’s pharmaceutical industry is forecast to reach USD 6.8 billion by 2025, up from USD 1.6 billion in 2020, according to the official VisitDubai.com portal.