London, Paris, and Cairo, 04 April 2023 – Marcyrl Pharmaceutical Industries (“Marcyrl”), a leading Egyptian pharmaceuticals manufacturer focused on specialty generics, today announced a new investment aimed at accelerating its ambition to drive greater access to critical care drugs across Africa. The significant minority investment from Development Partners International (“DPI”) and Amethis, will further institutionalise the business as it looks to capitalise on its leading market position and scale its product offering.
Marcyrl, established in 1998, is a leading manufacturer of essential pharmaceuticals, focused on improving accessibility to specialty generics drugs in Egypt. Since founding, the business has seen significant growth with resilient sales, demonstrated by a strong performance in the past year, with revenues representing more than 2% market share of the Egyptian market. Central to Marcyrl’s ambition is improving access to specialty pharmaceuticals in Egypt and across Africa through its international export network. To achieve this, the company is investing and innovating in its product portfolio, expanding into new specialty areas such as new hormonal therapy treatments, which it added to its portfolio in 2016. Marcyrl has also demonstrated its first mover ability in key areas of the market, in 2015 becoming the first company to produce and launch its antiviral product portfolio, highly effective treatments for Hepatitis C that allowed Marcyrl to access the tender market.
The African pharmaceutical market is vast, with demand for packaged medicines worth $18 billion a year. However, more than 60% of products continue to be imported, limiting affordability and access for communities across the continent. The market for specialty generics is one of the fastest growing segments of this market, with chronic illness and disease on the rise. Marcyrl, at the forefront of pharmaceutical innovation, is well positioned to take advantage of this opportunity and help meet this growing demand.
Farid Habib Salib, Chairman of Marcyrl Pharmaceutical Industries said: “At Marcyrl, we are working to transform the way specialty treatments are made accessible across Egypt and the entire African continent, ensuring that specialty care treatments are available to those that need them the most. Building on our 22 years of success, we will continue to innovate across our products, particularly in high-growth areas of specialty generics, developing much needed treatments to customers across the continent. We are pleased to welcome DPI and Amethis as new global investors and look forward to working with them to accelerate our growth and explore new opportunities to deliver cost-effective, critical solutions to healthcare practitioners and their patients across Egypt and Sub-Saharan Africa.”
Since its founding, Marcyrl has established itself as one of the top 10 leading pharmaceutical manufacturers in Egypt, alongside local and international players, and is recognised as a trusted partner to healthcare practitioners in the region, as a go-to supplier of specialty generic drugs for a variety of chronic diseases. The investment from DPI and Amethis will enable Marcyrl to build on its strong position in the market, enhancing its route to market strategy and driving innovation in new areas, such as the development of a new high technology manufacturing site in Egypt focused on new solutions to treat chronic diseases.
Ziad Abaza, Managing Director at Development Partners International said: “By leveraging its first mover advantage in critical specialty areas of the pharmaceutical sector, Marcyrl has carved out a unique position for itself in the market, recognised as a trusted partner in Egypt for delivery of specialty generics. Combining the entrepreneurial mindset of the Marcyrl management team with the company’s deep heritage of innovation, the business has a significant runway for growth, with strong foundations in Egypt, and a scalable platform well positioned to expand its distribution and export network across the continent. We look forward to working with the Marcyrl team to support the business in this next phase of growth.”
Toufic Khoueiry, Partner at Amethis said: “We are very pleased to be investing in one of the leading pharmaceutical manufacturers in Egypt, led by a talented and ambitious management team. We look forward to partnering with Marcyrl’s management and shareholders to achieve our shared vision of expanding the company’s reach, thereby improving access to reliable and affordable medicines across Egypt and the continent.”
Combining their expertise in supporting businesses to scale sustainably across the continent, DPI and Amethis will support Marcyrl to replicate its success in Egypt in new markets, supporting its digitalisation efforts and using technology to increase efficiency across its manufacturing and distribution networks. The investors will also support Marcyrl to further institutionalise the business, helping to facilitate technology partnerships, and expand Marcyrl’s connectivity to international export markets, opening up new distribution channels.
DPI and Amethis were advised by Freshfields Bruckhaus Deringer and White & Case, acting as legal advisors for the transaction, with PWC acting as financial advisors. The Marcyrl shareholders were advised by HC Securities & Investment acting as sell-side advisor, and Zaki Hashem & Partners acting as legal advisor.