Ethiotime1
Development Partners International (DPI) and CDC Group today announced that an agreement has been signed for KELIX bio to acquire Pharmaceutical Institute (PHI), a Moroccan-headquartered producer and distributor of generic and therapeutic pharmaceuticals.
DPI is an investment company that focuses on Africa. It has $2.8 billion in assets, which includes coinvestments. CDC Group is UK’s development finance institution that will shortly be renamed British International Investment (BII).
The acquisition, which will be funded by up to $200 million in a second round funding into KELIX Bio led by DPI/CDC/BII, will be subject to Moroccan regulatory approvals. It is expected that it will close in the first quarter 2022.
PHI was founded in 1989 by the Sedrati family. It is a leading distributor and manufacturer of pharmaceutical products in Morocco. The company has a strong international partners network and complementary manufacturing capabilities that will support KELIX bio’s strategy to create local ecosystems for production and distribution.
The proposed acquisition will mark KELIX bio’s first entry into Morocco, an important market on the continent, and gateway into the Francophone Africa pharma market, as it accelerates its expansion across the region. It will also enable PHI to expand its existing product range, benefitting from KELIX bio’s research and development capabilities, cross-selling synergies, and economies of scale it will provide.
There is a lot of demand in Africa for affordable specialty medicines that are accessible to the most vulnerable populations. KELIX bio is a pan-African buy and construct platform worth $750 million that was created in 2020 by DPI and CDC and the European Bank for Reconstruction and Development.
KELIX bio’s ambitious impact-focused strategy is driven by CEO Hocine Sidi Sidi-Said and Chief Strategy Officer Alhadi Alwazir. The goal of KELIX bio is to improve the quality life for people across Africa through the delivery life-saving drugs. KELIX bio recently appointed Jerome Silvestre as Chairman. He brings extensive experience in the global generics and pharmaceutical industry.
“KELIX bio is a gamechanger that has the potential to transform the African pharmaceutical industry – a sector that has historically been significantly underserved and inaccessible to many,” said Sofiane Lahmar, Partner at DPI.
“Signing this new agreement to acquire PHI demonstrates KELIX’s strong pipeline of opportunities and will enable it to continue to create significant long-term impact for communities across Africa, through delivery of essential and life-saving drugs. As a founding investor in KELIX bio, we look forward to continuing our partnership with the management team, BII, EBRD and future investors to the platform, as it progresses with its expansion.”
Nick O’Donohoe, Chief Executive at CDC/BII, said: “BII is helping to build productive, sustainable and inclusive economies for the benefit of those that need our capital the most. Providing access to affordable drug treatments is a vital part of that mandate.”
KELIX bio’s creation in 2020 has seen rapid growth. This is evident by its annual sales rising by 44% by 2021. The acquisition of PHI will be the fourth in two years, reaffirming KELIX’s commitment to Africa. DPI and CDC have just completed the latest round of funding, bringing total capital to $450m. This will be supported by $300 million more in planned investments over the next two-years as KELIX bio seeks to fund its strong pipeline, establish new cross market distribution channels, and support research and development.
Jerome Silvestre, KELIX bio Chairman, said: “We are pleased to have reached an agreement with Pharmaceutical Institute to join Kelix Bio, as we focus on our mission of improving access to affordable specialty drugs across Africa. PHI is a leader within the Moroccan pharmaceutical industry, with strong distribution networks and excellent manufacturing capabilities. We are confident that, subject to regulatory approvals they will be an excellent addition to KELIX Bio and look forward to a continued partnership with DPI, CDC and EBRD.”
Kelix bio used Sijilmasa Ltd (Mr Amine Rezzouk) as financial advisor and Naciri & Associés Allen & Overy as legal advisor. The Sedrati family was represented by UGGC.
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