Emirati pharma manufacturer Gulf Pharmaceutical Industries (Julphar) is selling its wholly-owned subsidiary, Zahrat Al Rawdah Pharmacies for SAR 444.1 mn (c. AED 434.3 mn) in cash, according to a disclosure (pdf). The sale involves retail pharmacy operations under its Planet Pharmacies division in Saudi Arabia, and is set to close in 1Q 2025, subject to approvals. Julphar expects the transaction to reflect on its earnings in 2025.

Why the sale? The pharma firm is divesting non-core assets and shifting focus towards its core “specialty pharma and innovative products in the Mena region.” Julphar is also considering new strategic windows for product development and manufacturing in Saudi Arabia.

About Zahrat Al Rawdah: With over 125 branches across Saudi Arabia, the company logged SAR 367.9 mn in revenue in 2023 and posted a net income of SAR 16.7 mn and accounted for 9.1% of Julphar’s total assets by the end of 1H 2024.

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