The United Arab Emirates (UAE) is one of the fastest-growing pharmaceutical markets in the Middle East, which, though depending on imports to meet the increasing demand for medical drugs, is attracting public and private investments in the development, manufacturing, marketing and distribution of a range of generic or brand medications.
Due to the conducive business climate, UAE has in the last 10 years seen an increase, though staggered over the period, mergers & acquisitions or special partnerships between local and international pharmaceutical companies or in some cases between private firms and government enterprises that have boosted UAE’s effort to increase production to meet domestic and export market demand.
This drive to expand UAE’s local pharmaceutical manufacturing capacity is largely being driven by the desire to achieve country’s 2030 Dubai Industrial Strategy goals such as the wooing of more international pharmaceutical firms keen on transferring a portion of their manufacturing capacity and research centers to the Emirates and leverage on the country’s growing market, its strategic location and advanced modern logistic infrastructure and friendly business environment.
In what appears to be taking advantage of current UAE’s attractive investment policies, the country’s Alpha Dhabi Holding PJSC (ADH) has recently announced signing a partnership agreement with ADQ, one of the region's major holding companies, to create UAE’s largest healthcare provider through ADH’s subsidiary, Pure Health Medical Supplies LLC. (1)
The agreement will enable Abu Dhabi Health Services Company and National Health Insurance Company to merge and create Pure Health.
It also paves way for Tumouh Healthcare, Yas Clinic Group and Abu Dhabi Stem Cell Centre “to become a part of Pure Health, which already has a diversified services portfolio of hospital management, laboratory services, medical supplies and healthcare informatics.”
The partnership, which was announced in early January 2021, coincided with the unveiling of two strategic investments by ADQ that focus on ramping the company’s healthcare and pharma portfolio including the acquisition of Pharmax Pharmaceuticals FZ-LLC. (2)
Pharmax Pharmaceuticals FZ-LLC, based within UAE, develops, manufactures and markets affordable, branded generic medication such as small molecule and oral solid dosage solutions.
Pharmax also holds a minority share in Biocon Biologics Limited, an affiliate of Biocon Ltd, an Indian biopharmaceutical company operating from Bangalore city in India.
ADQ says the strategy in the acquisition of Pharmax is to enable the company produce adequate affordable human drugs that are affordable to consumers in the UAE and also contribute to the growth of the country’s life sciences sector.
Pharmax, the first pharmaceutical firm to be located at the Dubai Science Park and which commenced production of affordable generic drugs in late 2018, did also sign a partnership with Swiss-based Acino, a leading market player in the Middle East and Africa’s pharmaceutical industry.
“Acino is committed to advancing the development of healthcare across the UAE and the wider region by accelerating access to high-quality medicines that patients and governments can trust and value,” said Dr. Andrew Bird, Acino’s General Manager and Head of Region, Middle East, Turkey, and Africa. (3)
Previously, UAE’s pharmaceutical industry reported key mergers and acquisitions or partnerships including the 2014 acquisition of pharmaceutical branded generic company Medpharma by Lebanese-based Pharma Solutions and Canada-based Valeant Pharmaceuticals.
Similarly, French firm Sanofi acquired a majority stake in Globalpharma, which produces tablets, capsules, dry syrup and other liquids for the UAE and Middle East market.
Although the mergers and acquisitions in UAE’s pharmaceutical industry is not as big as some of the Middle East markets, the country is determined to scale up investments in the drug manufacturing sector in the medium and long term according to the country’s Ministry of Health and Prevention.
“By encouraging investment in pharmaceutical manufacturing sector and cooperation...
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