Marksans Pharma signed a share purchase agreement to acquire a 100% stake in Access Healthcare for Medical Products L.L.C, a Dubai-based front-marketing and promotion company for a cash consideration of AED 13 million.
This transaction was approved by the board of Marksans Pharma on 23 April 2022. The acquisition is expected to be completed by 30 June 2022. Access Healthcare for Medical Products (Access Healthcare) provides pharmaceutical companies innovative marketing and sales solutions in the MENA (Middle East & North Africa) region. The company supplies these products in the UAE and other neighboring countries.
In the UAE market, Marksans Pharma supplied products through the Dubai Health Authority (DHA). It has market authorizations by the UAE regulatory authorities for various products. For the year ended December 2021, Access Healthcare for Medical Products registered a revenue of AED 12 million (Rs 25 crore) and a profit after tax ofAED 4.5 million (Rs 9.40 crore). The company has no debt on its books.
As per the company’s press release, this deal will enable the company to use the front-end sales and marketing infrastructure of Access Healthcare for marketing its products manufactured in the India, UK, and USA regions. It will bolster Marksans Pharma’s presence in the Middle East and North African regions by leveraging Access Health’s knowledge of local business cultures and access to a network of partners and distributors in those regions.
The shareholders of Access Healthcare will receive a cash consideration of AED 13 million (Rs 27.10 crore) on closure of the transaction, which is subject to regulatory approvals. The transaction will be funded from internal accruals, as per the company’s exchange filing.
On a consolidated basis, the company reported a 18.1% fall in net profit to Rs 48.27 crore on a 1.2% rise in net sales to Rs 362.63 crore in Q3 FY22 over Q3 FY21.
Shares of Marksans Pharma shed 1.97% to Rs 54.70 on BSE. Marksans Pharma is an Indian pharmaceutical company having a global footprint. The company’s strengths lie in research, manufacturing and marketing of finished dosage pharmaceutical formulations.