Abu Dhabi’s sovereign investor Mubadala Investment Company, which manages assets worth $276 billion in more than 50 countries, is set to acquire a pan-African specialty generic biopharmaceutical platform from a consortium of investors.
In one of the largest private equity exits and M&A deals in Africa over the last twenty years, Mubadala will fully acquire KELIX bio, an emerging markets-focussed specialty pharmaceutical company from the founding investors including Development Partners International (DPI), British International Investment (BII) and the European Bank for Reconstruction and Development (EBRD).
The deal size was not disclosed.
“Mubadala has entered into a definitive agreement to acquire KELIX bio to further strengthen the development of UAE’s life sciences ecosystem,” Mubadala said in a press release.
Set up in 2020 by Africa-focussed investor DPI, UK’s development finance institution BII, EBRD and executives Hocine Sidi-Said (in the photo above) and Alhadi Alwazir, Dubai-headquartered KELIX bio develops and commercialises 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.
“This partnership marks a key milestone in further advancing Mubadala’s position in the life sciences sector, to deliver important long-term socio-economic returns for our nation including improved healthcare, drug security, job creation, and GDP impact,” said Bakheet Al Katheeri, chief executive officer of Mubadala’s UAE Investments Platform.
“Since we established the business with our partners, we have worked closely with management to create a unique buy-and-build platform that increases the availability and affordability of quality drugs across Africa and the Middle East,” said Sofiane Lahmar, partner at DPI.
The deal comes in less than a week after Mubadala committed capital to vehicle financing company Moove, as part of its $100 million Series B funding round, which was led by American ride-hailing giant Uber Technologies. Earlier this month, Mubadala committed anchor investment to New York-based fund-of-funds Blue Opal Capital’s second venture capital fund.
