EGYPT – Nerhadou International for Pharmaceuticals and Nutraceuticals is set to receive US$20m from global investors willing to buy a minority stake in the company to accelerate the launch of various pharmaceutical products.
Nerhadou is one of the largest and fastest growing nutraceutical and pharmaceutical players as well as a pioneer oral dispersible film (ODF) manufacturer in Egypt.
It also has an attractive product pipeline comprising a number of innovative nutraceutical and pharmaceutical products both in ODF and conventional dosage forms.
Affirma Capital and StonePine have jointly agreed to invest US$20m for a minority stake in Nerhadou to accelerate the company’s growth plans, solidify its market position and bring the Company to IPO standards.
With the investment proceeds, Nerhadou plans to expand its existing operations and accelerate the launch of various innovative pipeline products in the Egyptian and regional markets.
“We have been identified by both Affirma Capital and StonePine as a “unique player” due to our significant presence and dominant market share across key nutraceutical product subsegments,” Nerhadou International said in a press statement.
Nerhadou strategic objective is to be positioned amongst the leaders in providing top quality products for human nutrition, beauty & health as well first brand names of pharmaceuticals to the Middle East market.
“The strategy is based on being number one in every single market in which we compete and Nerhadou has already reached leadership in some therapeutic segments that it operates,” the statement disclosed.
CEO of Nerhadou Mohamed Shalaby said that Affirma and StonePine have been hands-on partners in helping the manufacturer identify and execute several value enhancement initiatives.
The Egyptian pharmaceutical sector is growing rapidly as Egypt continues to record stellar growth as a result of a highly favorable investment environment.
“Nerhadou becomes the first joint investment by Affirma Capital and StonePine in Egypt and will also support the broader Egypt-focused investment strategy,” he further said.
However, the transaction closing is pending regulatory approvals including the Egyptian Drug Authority (EDA) and satisfaction of certain conditions agreed between the parties.
ADIB Capital (investment banking arm of Abu Dhabi Islamic Bank Egypt), acted as the lead sell-side advisor on behalf of Nerhadou while Al Tamimi and Company served as the legal advisor.
On the other hand, Renaissance Capital acted as the exclusive financial advisor on behalf of Affirma Capital and StonePine supported by White & Case as legal advisors.
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