Marksans Pharma takes a step further to reach its goal of Rs 2,000 crore in revenue
This deal will enable Marksans to use the front-end sales & marketing infrastructure of Access Healthcare
The stock of Marksans Pharma Limited tumbled more than 2 per cent on Monday; however, it has delivered a strong performance on an MTD basis as it went up by over 20 per cent.
In a recent development, Marksans Pharma Limited, one of the fastest-growing pharmaceutical companies in India, signed a share purchase agreement to acquire a 100 per cent stake in Access Healthcare for Medical Products LLC, a Dubai-based front-marketing & promotion company. This transaction was approved by the board of directors of Marksans Pharma on April 23, 2022.
Access Healthcare for Medical Products (Access Healthcare) provides pharmaceutical companies with innovative marketing & sales solutions in the MENA (the Middle East & North Africa) region. The company supplies these products in the UAE and other neighbouring countries. In the UAE market, the company supplies products through Dubai Health Authority (DHA). It has market authorisations by the UAE regulatory authorities for various products. For the year ended December 2021, Access Healthcare for Medical Products posted revenues of AED 12 million (Rs 250 million) and a profit after tax of AED 4.5 million (Rs 94 million). The company has no debt on its books.
This deal will enable Marksans to use the front-end sales & marketing infrastructure of Access Healthcare for marketing its products manufactured in the India, UK, and USA regions. It will bolster Marksans' presence in the Middle East and North African regions by leveraging Access Healthcare's knowledge of local business cultures as well as access to a network of partners & distributors in those regions.
The shareholders of Access Healthcare will receive a cash consideration of AED 13 million (Rs 271 million) on the closure of the transaction, which is subject to regulatory approvals. The transaction will be funded from internal accruals.
Commenting on the transaction, Mark Saldanha, Promoter & Managing Director of Marksans Pharma said, “This acquisition strengthens our presence and market access in the region. We remain committed to our goal of reaching Rs 2,000 crore in revenues, improving our margins over the next couple of years, and delivering superior returns for our shareholders".