A subsidiary of Integrated Pharma Solutions (IPS), a local-based pharmaceutical corporation, has acquired a 52.5 percent share of MEIVO Pharmaceuticals in Egypt.

IPS was established in 2013 to acquire a network of manufacturing companies in the MENA region, its scope of business also includes marketing and distribution of medical equipment and pharmaceutical products. Its chairman is Ahmed Yacout who, with his family, control 56 percent of the company. Roger Saadeh owns the balance.

“The MEIVO acquisition is the first step in the regional pharmaceutical manufacturing network that IPS is aiming to establish in the MENA region,” said Yacout.

Yacout said that the company sees significant potential in MEIVO Pharmaceuticals, which manufacturers a diversified portfolio of more than 50 products in the therapeutic segments.

The deal between IPS and MEIVO was managed by BSEC, the financial arm of Bank BEMO.

Oleg Kaplanian, Analyst at BSEC, said: “The first reason behind choosing an Egyptian company is the price levels, since the operational costs in Egypt are lower than other markets, at the same time having a good quality.” He said that the second reason is that there is a large demand for generic medicine in Egypt, because of the markedly lower price compared with cutting-edge drugs.

“From the Egyptian facilities, IPS can export at affordable prices to the Gulf and African countries,” said Kaplanian.

BSEC supervised the execution of the transfer of shares on the Egyptian Exchange (ESX), and handled structural and legal aspects of the transaction. Ronald Yazbeck, General Manager of BSEC, stated that: “BSEC holds great prospects for the group as it sets its footprint in the region.”

MEIVO has been manufacturing and distributing generic medical and pharmaceutical products since 2005. In 2012, Meivo Pharmaceuticals completed a new factory, which company officials said operates in compliance with international standards including US FDA and GMP.