Sources told Daily News Egypt that the Rx Healthcare platform owned by EFG Hermes has progressed with a number of promising acquisition opportunities in the business to business (B2B) and business to consumer (B2C) pharma segments. The platform is currently at advanced stages of negotiation and execution with potential aggregate deal values exceeding EGP 1bn, supporting EFG Hermes's strategy of expanding its investments in the pharmaceuticals sector. The sources added that U Pharma (UP) — which is owned by Rx Healthcare — has successfully closed FY2021 with outstanding revenue growth, exceeding its Egyptian market peers. During FY21, UP ramped up its sales, almost doubling its yearly output on an annual basis. UP has diversified its distribution network, with its largest client segment contributing only 30% of total sales. It has also successfully increased its market share and market ranking as per IMS (THERE'S TOO MANY RESULTS ON THE INTERNET FOR IMS. BE SPECIFIC.) estimates and is now a market leader in the hospital solutions space. Furthermore, in FY2021, UP almost doubled its sales y-o-y with an earnings before interest, taxes, depreciation, and amortisation margin exceeding several established market peers. Moreover, UP's full facility upgrade plan is in its final stages and is on track to be finalised in the early months of 2022, setting up the necessary capabilities to drive the company's upcoming growth plans. It is also capitalising on the success achieved in FY2021 to expand the product portfolio by adding complimentary products serving the hospitals B2B segment — such as anaesthetics and higher value added injectables — and synergistic hydro-based products serving the B2C segment, in addition to enhancing focus on exports to neighbouring markets facing shortages in essential medical supplies.
