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Dubai: Julphar, a UAE-based pharmaceutical manufacturing company in the Middle East, and Global Investment House (Global), the leading manager of Private Equity investments in the region on Saturday announced the formation of Planet Pharmacies LLC (Planet).
Planet, a holding company being established in Dubai, UAE, seeks to become the largest healthcare products retailer in the Mena region through organic and inorganic growth strategies.
"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," said Abdul Razzaq Yousuf, chairman of Planet Pharmacies.
The company will be formed with a capital of Dh900 million ($245.03 million), which will eventually be increased to Dh3 billion. Julphar will have a stake of 40 per cent and Global will have 60 per cent stake.
Planet Pharmacies aims to consolidate the fragmented and unorganised retail pharmaceutical industry as well as improve the standard of services.
It seeks to create employment opportunities for Arab professionals.
"The company will commence operations with 65 pharmacies and clinics and aims to have more than 2,000 pharmacies in the entire Mena region by 2010," said Yousuf.
Leading brands
"Planet Pharmacies will be a leader in the pharmaceutical retail business and allied services. Its goal is to have strong presence in the entire Mena region, bringing in the best medicine and leading brands to the end users," said Omar Al Quqa, executive vice-president of Global and vice-chairman of Planet Pharmacies.
Commenting on the market trends, Shailesh Dash, senior vice-president and head of private equity at Global and member of the Board of Planet Pharmacies, said, "The pharmaceuticals industry in the GCC has grown at a CAGR of over 10 per cent from 1999 through 2004 as against six per cent globally.
"Double digit growth in this sector is expected to remain through the next five to six years with the key growth drivers for the sector being a fast-growing population; increasing healthcare infrastructure investments by GCC governments; and growing health, hygiene and well being consciousness."
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