Hikma Pharmaceuticals Plc Hikma entering Ethiopian pharmaceutical market (2366O)
September 18 2013 - 2:00AM
UK Regulatory
TIDMHIK
RNS Number : 2366O
Hikma Pharmaceuticals Plc
18 September 2013
PRESS RELEASE
Hikma entering Ethiopian pharmaceutical market through a joint
venture with MIDROC Group
London, 18 September 2013 - Hikma Pharmaceuticals PLC ("Hikma")
(LSE: HIK) (NASDAQ Dubai: HIK) (OTC: HKMPY), the fast growing
multinational pharmaceutical group, today announces that it has
signed a 50:50 joint venture ("JV") agreement with MIDROC
Pharmaceuticals Limited, a member of Sheikh Mohammed Hussein Al
Amoudi's MIDROC Group ("MIDROC"), to establish a presence in the
Ethiopian pharmaceutical market. The JV will be called
HikmaCure.
Commenting on the transaction, Said Darwazah, CEO of Hikma said,
"I am extremely pleased to be partnering with MIDROC to bring high
quality, affordable medicines to the Ethiopian market. Expanding
our presence into sub-Saharan Africa is a key strategic priority
for Hikma and this is an excellent first step. We believe Ethiopia
offers strong growth potential in the medium to long term and our
investment at this stage will enable us to be well positioned in
the market. We will continue to explore opportunities to build our
presence in the sub-Saharan region."
Ethiopia has a population of 94 million people, 64% of whom are
under 25 years old. The Ethiopian pharmaceutical market is valued
at over US$500 million. It is growing at a compound annual rate of
around 15% and is expected to reach approximately US$1 billion in
2018, driven by increasing investment in healthcare infrastructure
and improved purchasing power of patients. Currently the market is
highly dependent on imports, which account for around 75% of the
total pharmaceutical market.
Over the next five years, HikmaCure will establish an Ethiopian
operating company, build a local manufacturing facility and will
begin marketing and distributing pharmaceutical products in
Ethiopia. In the short term, MIDROC will work with Hikma and
HikmaCure to register, market and distribute Hikma's products in
the Ethiopian market.
Hikma and MIDROC will invest in HikmaCure in equal proportions
and have committed to provide up to $22.3 million each in cash. The
funds will be invested over time and will be used to build and
fit-out a local manufacturing and distribution facility in Ethiopia
and to provide working capital support for the operations of
HikmaCure. The facility is expected to begin commercial production
in 2017.
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Enquiries
Hikma Pharmaceuticals PLC
Susan Ringdal, VP Corporate Strategy and Investor Relations +44
(0)20 7399 2760/ 07776 477 050
Lucinda Henderson, Investor Relations Manager +44 (0)20 7399
2765/ 07818 060 211
FTI Consulting
Ben Atwell /Julia Phillips/Matthew Cole +44 (0)20 7831 3113
About Hikma
Hikma Pharmaceuticals PLC 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. Hikma's operations are conducted through
three businesses: "Branded", "Injectables" and "Generics" based
principally in the Middle East and North Africa ("MENA") region,
where it is a market leader, the United States and Europe. In 2012,
Hikma achieved revenues of $1,108.7 million and profit attributable
to shareholders of $100.3 million.
About MIDROC
The MIDROC International Group of Companies is owned by global
businessman, Sheikh Mohammed Hussein Al Amoudi and consists of more
than 100 companies operating in Africa, Europe, the Middle East and
Asia. MIDROC is particularly active in Ethiopia, with interests in
property, steel, construction, cement, air transport,
manufacturing, mining, agriculture and the Sheraton Addis hotel.
MIDROC undertakes major projects that are not only commercial but
have overseas development and humanitarian aspects.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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