Kelix bio, an emerging markets-focused specialty generic biopharmaceutical company has struck its fifth strategic deal since its acquisition by Abu Dhabi sovereign investor Mubadala Investment Company last year. It has fully acquired a UAE-based diabetes drug manufacturer, expanding its product portfolio of affordable critical drugs.
The buy-and-build speciality generic business has acquired DiabTec, a diabetes medication manufacturer from Ras Al Khaimah-headquartered pharmaceutical company Julphar, according to an annoucement by Mubadala. DiabTec manages the manufacturing and commercialization of diabetes products including oral anti-diabetics and insulin.
DiabTec's facility includes 20,000-liter drug substance reactors and a separate cartridge fill-finish facility for drug products.
"This strategic investment reflects our commitment to responsible investing, addressing critical global healthcare challenges like the growing need for insulin analogues," said Bakheet Al Katheeri, chief executive officer of Mubadala’s UAE Investments Platform. “Moreover, it strengthens Mubadala's portfolio of biologicals, establishes our role in biomanufacturing across the MENA region, and advances the UAE's life sciences sector through local manufacturing.”
As part of the transaction, Julphar has entered into a long-term agreement with DiabTec to procure human Insulin API for its inhouse finished drug manufacturing and for its licensing partners.
“The sale of this facility is a further step in Julphar’s strategy to divest non-core assets," said Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar.
Mubadala, which manages assets worth $276 billion in more than 50 countries had acquired Kelix Bio from founding investors including Development Partners International (DPI), British International Investment (BII), and the European Bank for Reconstruction and Development (EBRD), last year. The acquisiton was in line with Mubadala’s strategy expand its healthcare platform in North Africa and India and benefit from Kelix’s expertise in the biopharmaceutical sector.
In October last year, Kelix Bio had fully acquired four UAE-based pharmaceutical manufacturers and suppliers. These include four portfolio companies of Global One Healthcare Holding (GOHH)- Gulf Inject (GI), Bioventure FZ (BV), Bioventure Healthcare FZE (BVH) and WellPharma Medical Solutions (WMS). GOHH operates as the Healthcare Division of Abu Dhabi-based Yas Holding, and manages a portfolio of eight pharma companies.
Mubadala’s acquisition of Kelix Bio is aimed at strengthening the development of the UAE’s life sciences ecosystem, positioning the UAE as a global leader in the life sciences sector, and supporting the diversification of the economy in the UAE.
Kelix bio focuses on selected therapy areas and product forms with high demand and growth potential such as oncology, diabetes, respiratory, inhalers, injectables, and biosimilars. Kelix has operations in Burundi, DRC, Djibouti, Egypt, Eritrea, Kenya, Libya, Mauritius, Sudan, Uganda, Zambia and Zimbabwe.
Set up in 2020 by Africa-focused investor DPI, UK’s development finance institution BII, EBRD, and executives Hocine Sidi-Said and Alhadi Alwazir, KELIX bio develops and commercializes affordable specialty products for underserved populations across emerging markets.
Formed by merging Egypt’s leading generic pharmaceuticals manufacturer Adwia with an Indian generic drugs company Celon Labs, KELIX bio has an export presence in over 50 countries across Africa, Latin America, Southeast Asia, and the Middle East. The specialty generic business has four manufacturing sites in Morocco, Egypt, India, and Malta, offering 105 oncological products, 64 anti-infectives, and 94 treatments for central nervous system and cardiovascular conditions. Its revenues have exceeded $150 million.
Following the initial capital infusion, KELIX bio raised further funding from DPI and BII. DPI invested both directly, and indirectly through its third investment vehicle, a $1.15 billion fund, ADP III, which raised capital from Proparco, DEG, FMO, and US-based private sector and institutional investors. With that, KELIX Bio invested in new acquisitions, cross-market distribution channels, and the research and development of new drugs. Besides Adwia and Celon Labs, its other two subsidiaries are Kelix Bio Malta and Morocco’s largest generic pharma producer PHI, operating across six countries.
Acquired by KELIX bio in 2020, Adwia exports across the Middle East, Eastern Europe, and Africa, while Celon Labs manufactures innovative and cost-efficient oncology and critical care treatments and exports to more than 42 countries globally.
