BackAlembic Pharma to form JV with Algeria’s Adwiya Mami
Alembic will acquire around 49% equity in Adwiya, which will allow the Indian firm to enter the Algerian market where local manufacturing is an advantage
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Mumbai: Alembic Pharmaceuticals Ltd said on Monday that it will form a manufacturing joint venture (JV) company with Algeria’s Adwiya Mami SARL by acquiring around 49% equity in the latter.
The JV between Alembic Global Holding SA and Adwiya Mami will allow the Indian drug maker to enter the Algerian market where local manufacturing is an added advantage.
Adwiya Mami currently owns a large capacity oral drug formulation factory in Algeria. After the completion of the JV deal, the company will be renamed as Alembic Mami Spa.
The Algerian pharma market size is currently estimated at $3 billion, and local sourcing will be an added advantage for Alembic as there are entry barriers for drug imports into the market.
“The JV company will be run by both the companies with equal representation in the board," Alembic said in a Monday note to stock exchanges.
Tagreed Alshunar, a pharma industry veteran and Alembic’s nominee on the board of the new entity, will be the new chief executive officer of Alembic Mami, the company said in its note.
Shares of Alembic Pharma fell 3.64% to ₹ 406.55 on BSE, while the exchange’s benchmark Sensex shed 0.37% to 26,752.90 points.
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