Morocco: DPI and CDC in pharma deal
Development Partners International (DPI), an investment firm focused on Africa with $2.8 billion in assets under management including co-investments, and CDC Group, the UK’s development finance institution, 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. The acquisition, which will be financed through up to a $200 million second round of funding into KELIX Bio led by DPI and CDC, is subject to regulatory approvals in Morocco. It is expected to close in the first quarter of 2022.
KELIX Bio is a specialty generic business focused on emerging markets. Its current investors include DPI, CDC and the European Bank for Reconstruction and Development (EBRD).
Founded in 1989 by the Sedrati family, PHI is a leading manufacturer and distributor 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 significant demand in Africa for affordable speciality drugs, accessible to underserved communities that need them the most. KELIX Bio, a $750 million pan-African buy and build platform, was established in 2020 by DPI, CDC and the European Bank for Reconstruction and Development (EBRD), in response to this demand.
Sofiane Lahmar, partner at DPI commented, “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. 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.”
KELIX Bio used Sijilmasa Ltd (Mr Amine Rezzouk) as financial advisor and Naciri & Associés Allen & Overy as legal advisor. UGGC was legal advisor to the Sedrati family.
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