Gulf Pharmaceutical Industries (Julphar) has sold 100 percent of its subsidiary Gulf Inject LLC to a division of Abu Dhabi’s Yas Holding LLC.
In a statement to Abu Dhabi Securities Exchange (ADX), the Ras Al Khaimah-based company said the deal was part of its strategy to strengthen its core product portfolio and divest from non-core activities, saying it would help expansion in the region and beyond.
CEO Dr Essam Mohamed said: “The divestiture is a step towards streamlining our operations and bringing a sharper focus on developing Julphar’s generic pharma model in the region and beyond.
“The sale of Gulf Inject comes as part of the company’s strategy to continue its growth in the most value adding core activities. We are working on expanding the base of our generic pharmaceutical portfolio to include new and more complex combination products and biological technologies, encouraging innovation and promoting the production of innovative medicines locally.”
The ADX statement said the sale of Gulf Inject, which manufactures IV fluids, would allow it to expand its portfolio through in-house research and development licensing partnerships.
“The transaction strengthens Julphar’s cash position and allows the company to accelerate the investment in its ongoing product pipeline initiative,” the ADX statement said.
Sheikh Saqer Humaid Al Qasimi, Julphar’s board chairman, said: “We believe this deal is in the best interest of Julphar and our shareholders as we intend to maximise value with a strategy that continues to focus on the large and growing core areas of the company.
“Since its establishment in 1994, Gulf Inject has developed into a leading IV Fluids player in the region and achieved a very successful turnaround of its business in recent years.
“We are confident that under the new ownership, this growth strategy will be taken to the next level.”
(Writing by Imogen Lillywhite; editing by Daniel Luiz )
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