Hikma Pharmaceuticals, the fast growing multinational pharmaceutical group, has agreed to acquire the Egyptian Company for Pharmaceuticals & Chemical Industries (EPCI) from a consortium of shareholders. Hikma will pay an aggregate cash consideration of EGP 142.4 million upon closing, or approximately US$ 22.2 million, based on the current exchange rate.

The acquisition of EPCI: strengthens Hikma’s position in the large and fast growing Egyptian market, adds a complementary portfolio of 35 products in 46 dosage forms and strengths, including 3 original cephalosporin anti–infective brands for the Egyptian market, enhances Hikma’s portfolio in key therapeutic areas such as cephalosporin anti–infectives, central nervous system and alimentary tract and provides entry into the ophthalmology market, adds a dedicated cephalosporin facility and an additional general formulation manufacturing plant in Egypt and leverages Hikma’s established market position in Egypt and strong sales and marketing team.

The Egyptian pharmaceutical market is one of the largest and fastest growing MENA markets. According to IMS Health, the private retail market is valued at around $2.3 billion and grew by 10.6% in the twelve months to June 2012. With a population of approximately 844 million people, the Egyptian market offers excellent growth opportunities. Hikma Egypt is currently the seventeenth largest pharmaceutical manufacturer in Egypt, with an estimated market share of 1.6%.

Commenting on the transaction, Said Darwazah, CEO of Hikma said, "Since we entered the Egyptian market in 2007, we have been rapidly growing our presence. This acquisition will further accelerate that growth, expanding our product portfolio and adding additional manufacturing capacity and technologies. We continue to strengthen our position as the leading regional manufacturer in MENA and to pursue other value–creating acquisition opportunities in the region."

Closing is expected to occur before February 14, 2013 and is conditional on fulfillment of conditions precedent.

HC Securities and Investment, the Cairo–based investment bank, acted as advisor to Hikma on this acquisition.

Hikma Pharmaceuticals is a fast growing multinational pharmaceutical group focused on developing, manufacturing and marketing a broad range of both branded and non–branded generic and in–licensed products.