Abu Dhabi-based holding company ADQ announced two strategic investments to expand its portfolio in healthcare and pharma sectors.
The holding company has agreed to buy Pharmax Pharmaceuticals, a UAE-based pharmaceutical firm for the production and marketing of inexpensive, generic branded medicines.
The second one is to invest in a minority stake in Biocon Biologics, a subsidiary of Biocon Limited, specializing in the production, manufacture, and marketing of high-quality, affordable biosimilars worldwide. Both transactions are subject to regular closing conditions, including regulatory approvals.
ADQ intends to improve its healthcare portfolio through the investment in Pharmax by addressing the shortage of affordable medication and create a cost-effective healthcare system in the UAE. At the same time, the equity investment in Biocon Biologics represents a vital step towards developing cutting-edge expertise in high-quality biosimilars to treat chronic conditions such as diabetes, oncology, immunology, and so on.
Furthermore, a minority stake in Biocon Biologics would allow the company to be exposed to the fast-growing segment of biosimilars. ADQ’s comprehensive portfolio will also expand to pharmaceutical procurement, handling, and logistics, with its ownership of Rafed, Abu Dhabi Ports, Abu Dhabi Airport Company, and its investment in Aramex.
“Our long-term ambition for ADQ’s healthcare and pharma portfolio is to create a provision-centered, digitally enhanced ecosystem that is anchored in world-class clinical excellence, effective population health management, and resilient supply chain infrastructure. As a local producer of generic medication, Pharmax will provide us with a high-quality facility, deep sector knowledge, and strong relationships for growing pharma manufacturing in the UAE. Biocon Biologics proven R&D track record, manufacturing scale, and commercial partnerships worldwide provide us with an opportunity to benefit from the biosimilar sector that is set to grow as patents of originator biologics expire and patients demand lower priced drugs globally.”
Dr. Kiran Mazumdar-Shaw, Executive Chairperson of Biocon said, “We welcome ADQ as our investment partner as we pursue our shared goal of expanding access to high-quality affordable biopharmaceuticals to patients across the globe. This investment is an endorsement of the value that Biocon Biologics business has built as a fully integrated pure-play biosimilars company and will enable us to expand our capabilities further.”
“We established Pharmax with the belief that patients all over the world deserve access to affordable, effective medications. Joining forces with ADQ will allow us to increase the availability of locally manufactured, quality, affordable generic, and complex drugs. At the same time, we will have greater opportunities to increase the availability of pharmaceuticals in the UAE while further expanding our distribution in the region,” commented Madhukar Tanna, Chief Executive Officer of Pharmax Pharmaceuticals.