Gulf Pharmaceutical Industries PJSC (Julphar), one of the largest pharmaceutical manufacturers in the Middle East and Africa, announces the divestment of DiabTec LLC. DiabTec is a 100% owned subsidiary of Julphar and manufactures recombinant human Insulin API. The transaction is expected to be completed in the coming weeks subject to customary governmental approvals.
Julphar will continue its focus on the Diabetes segment and its efforts to strengthen its Insulin portfolio with the aim to provide new treatment solutions to patients in the United Arab Emirates and MENA markets. Julphar is on track to launch its new generation Insulin Analogues in the region with Glargine biosimilar expected to be in the market in 2025.
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 as well for its licensing partners.
The transaction is in line with Julphar’s strategy to divest non-core activities and pivot towards future portfolio growth areas. The company will invest part of the divestment proceeds in its growing pipeline of value adding and specialty pharmaceutical products. Julphar has more than 90 products in its product pipeline in different stages.
Looking ahead, Julphar aims to continue the robust development of launching new innovative products and therapies, following the approval of 55 new product registrations across different markets in the MENA region in 2023.
Sheikh Saqer Bin Humaid Al Qasimi, Chairman of the Board, Julphar, said: “The divestment of DiabTec LLC is a further step in Julphar’s strategy to divest non-core assets and unlock value for its shareholders. In the recent past, Julphar has shown remarkable advances in bringing high quality healthcare solutions to the markets in MENA.”
Dr. Basel Ziyadeh, Chief Executive Officer, Julphar, said: “The deal allows us to focus on our core drug manufacturing and commercialization activities across the MENA region while we continue expanding our longstanding human Insulin heritage. The divestment proceeds support Julphar’s continued investment in expanding our diabetes and specialty biotech portfolio. Insulin products are a core segment in Julphar’s Diabetes portfolio and we are on track to launch Glargine biosimilar in the coming year.”
