SPIMACO, a leading Saudi Arabia-based pharma company, announced the signing of sale and purchase agreements (SPAs) with the principal shareholders of Osmopharm, a Swiss-based innovation-driven pharmaceutical company.
Bruno Scapinelli and Ahmed Abd El Monem Aly Habib are the principal shareholders of SIGMA Pharmaceuticals Industries, which owns Osmopharm.
The transaction involves SPIMACO acquiring a 68 per cent stake in Osmopharm, while divesting 76.4 per cent shareholding in SPIMACO Misr, the company’s Egyptian subsidiary, in a share swap agreement.
The share swap will be supplemented with a cash consideration of CHF 800,000 (equivalent to SAR 3.3 million), the company said.
The transaction will involve a total value of SAR 16.1 million.
The boards of directors of both companies have approved the share swap.
Jerome Cabannes, Chief Executive Officer of SPIMACO, said they are excited to welcome Osmopharm to the SPIMACO family.
“This acquisition is a strategic step that will allow us to realise substantial synergies, gain access to innovative modified release drug delivery technologies, and accelerate our expansion into the European market,” he said.
Osmopharm is a Swiss-based innovation-driven pharmaceutical company specialised in the development and production of modified release (MR) solid oral form drugs such as pellets, tablets and resinate.
The deal is expected to provide SPIMACO a significant opportunity to strengthen its product portfolio, enhance its position in Saudi Arabia, and broaden its international footprint.
Osmopharm is active in the growing extended release (XR) drugs market (part of modified release (MR) concept), which enjoys a growth rate of approximately 11 per cent annually in the Western oral XR sector, valued at around $9 billion.
The oral XR market in Saudi Arabia, and MENA overall, although smaller at approximately $500 million, is more fragmented, indicating significant potential for market consolidation.
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