MédiS, a generic pharmaceuticals business with operations in Tunisia and Algeria, has agreed to acquire Winthrop Pharma Senegal from Sanofi in an undisclosed deal. Actis acquired what was described as “a meaningful stake” in MédiS from fellow-private equity investor AfricInvest in late August last year.
A proportion of the capital for the acquisition was provided by MédiS, with the balance being provided by Actis’s $780 million Africa Fund 4. Winthrop Pharma Senegal enjoys a significant position in the pharmaceuticals sector in French-speaking sub-Saharan Africa, and the deal reflects Actis’ stated strategy at the time of its original investment of helping build MédiS into a significant pan-African and Middle Eastern pharmaceuticals platform by injecting additional capital where needed to finance its planned build-and-buy strategy.
MédiS currently has a presence in 16 countries in French-speaking Sub-Saharan Africa. The region’s pharmaceuticals market is estimated to be more than $2.5 billion in size and is expected to grow at close to double digit rates over the next 5 years. Penetration of the market by branded generic drugs is low compared to many other region in the world, but is expected to expand rapidly driven by the emerging middle class consumer, better healthcare infrastructure, the rise in insurance and external donor support for healthcare systems.
As a result of the transaction, MédiS adds one of the most important productions platforms in West Africa to its portfolio of production sites which currently includes facilities in Tunisia, Algeria and the Czech Republic. The 34,000 square meter facility is located in the Rufisque district of Senegal’s capital, Dakar, and has approvals and controlled substance authorizations from Senegalese and several other West and Central African health ministries.
“This acquisition is extremely exciting.” said Hichem Omezzine who lead the deal for Actis. “Not only will MédiS benefit from a world-class facility with significant production capacities and space available for further expansion, but the business is also gaining an extremely strong platform from which to access the Sub-Saharan African market.”
JurisMed provided MédiS with legal advisory services on the transaction.