Julphar, Global set up $245m pharmacy venture
Dubai, December 16, 2007
Gulf Pharmaceutical Industries (Julphar), a pioneer in pharmaceutical manufacturing industry in the Arab World, and Global Investment House, a leading manager of private equity investments in the region, have set up a pharmacy stores venture.
Planet Pharmacies, a holding company being established in Dubai, aims to become the largest healthcare products retailer in the Mena region through organic and inorganic growth strategies.
In a joint press conference held at the Fairmont Hotel in Dubai, Abdul Razzaq Yousef, the chairman of Planet Pharmacies and Omar El-Quqa, executive vice president at Global and vice chairman of Planet Pharmacies made the announcement.
Yousef said that the chemistry between the largest pharmaceutical manufacturer in the region, Julphar and the leading private equity manager in the region, Global will bring in synergies of immense proportion and revitalise the entire healthcare industry in the Mena region.
He added that the formation of the company will bring order to the fragmented and unorganised retail pharmaceutical industry as well as improve the standards of services to public and generate employment to Arab professionals.
The company will bring in industry experts from all across the globe who will in-turn assist Planet in its ambition and vision of improving the standards of the pharmaceutical sector in advanced countries of Europe and America.
“The company will commence its operations with 65 pharmacies and clinics and aims to spread to the entire Mena by 2010 with more than 2,000 pharmacies.”
El-Quqa expressed his pleasure and shared his vision of making Planet a leading force and provider of quality medicine across Middle East and North Africa (Mena).
The company will initially have a capital of Dh900 million ($245.03 million). It will be eventually increased to Dh3 billion. Julphar and private equity funds managed by Global will be the founders having 40 per cent and 60 per cent shareholding respectively.
Yousef followed by saying that the company could be a reliable partner to insurance service providers and provide a very large network of pharmacies, identical in service and standards, throughout the region.
The chairman of the new company explained that Planet’s retail basket shall include a mix of prescription and over the counter drugs, cosmetics and other health and hygiene products. There also would be an opportunity to develop in-house brands across select product lines.
In addition, stores would provide value added services like skin care advice, prescription filling services, tie-ups with insurance providers, drive through facilities and 24-hour pharmacies. The network will also provide customer loyalty programs, benefiting the end users/customers. Planets business model will also include having clinics attached to its pharmacies. -TradeArabia News Service