Dubai Investments PJSC, the leading investment company listed on the Dubai financial market [DFM], has announced the divestment of 66% equity stake in its pharmaceutical subsidiary Globalpharma to French drug major Sanofi (Euronext: SAN).

Under the agreements entered between DI and Sanofi, Globalpharma will be managed as a Sanofi company and will become the platform to manufacture and promote the generics portfolio of Sanofi in the Middle East markets. Last month, Globalpharma signed a deal with Sanofi to manufacture some of its generic medicines in the UAE.

The total value of the deal was not disclosed, but DI said it received an internal rate of return of 26% over a 10-year period. It will retain the rest of the stake in Globalpharma.

In his comments, Khalid Bin Kalban, managing director and chief executive of Dubai Investments, said: “Our investment in Globalpharma was well timed as we capitalized on the rapid growth in the pharmaceutical sector in the region. With the direction and support of DI, the management executed a successful strategy which has attracted a lot of strategic interest. This created the opportunity for our successful sell-down. We believe that the new partnership being forged with Sanofi will propel Globalpharma to the next level of its growth.”

DI commercialized Globalpharma in 2003 and grew the company to become a market leader in certain therapies. Globalpharma is currently registered in more than 14 countries across the GCC, Middle Eastern and neighbouring markets. Globalpharma manufactures pharmaceutical products under CGMP conditions including antibiotics, cardiovascular, anti-ulcerants, painkillers, food supplements, vitamins, anti-diabetics, respiratory products and anti-allergic formulations. Globalpharma has achieved healthy double-digit growth year-on-year since 2010.

DI’s divestment and agreement with Sanofi is first-of-its-kind in the Middle East Generics market that combines Sanofi’s strong heritage of international quality treatments with a local trusted partner in generics medications – Globalpharma – to reach more patients with affordable medications.

Globalpharma will be managed as a Sanofi company and will become the platform to manufacture and promote the generics portfolio of Sanofi in the Middle East markets. The portfolio will include anti-infective, cardiovascular and gastrointestinal products. Globalpharma will offer affordable treatment options to address the unmet healthcare needs of population in the Middle East region.