Julphar plans pan-Arab drug store

Global Investment House said yesterday its funds would invest in building a chain of drug stores across the Middle East and North Africa with Gulf Pharmaceutical Industries of the United Arab Emirates.

Two of Kuwait-based Global's private equity funds and other investors would own 60% of the venture, Planet Pharmacies LLC, which will have an initial capital of 900 million dirham ($245.1 million), the company said in a statement.

Gulf Pharmaceutical, also known as Julphar, will own the rest of the venture. Planet's investment will eventually increase to 3 billion dirhams, Global said.

"The company will commence its operations with 65 pharmacies and clinics and aims to spread to the entire Middle East and North Africa by 2010 with more than 2000 pharmacies," it said.

Planet's stores would also tie up with insurers, according to the statement.

Julphar said last week it planned to invest 1.23 billion dirhams over three years to push into Asian and Middle Eastern markets and set up an insulin plant in the UAE's Ras Al-Khaimah emirate, where it is based.

Global estimates the pharmaceutical industry in Gulf Arab region maintained a compound annual growth rate of more than 10% in the six years to 2004, compared with 6% for the industry globally, Shailesh Dash, senior vice president - head of private equity, said in the statement.

The industry will sustain "double-digit" expansion through the next 5 to 6 years on population growth and increasing healthcare infrastructure investments, Dash said.

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