Desi drug companies eye Oman pharma firm

Leading domestic drug firms are in talks with the Oman-based National Pharmaceutical Industries Company to pick up about 35 per cent stake held by private promoters in the company.

NPIC is the first pharmaceutical company set up in public-private partnership in the Sultanate of Oman.

The Oman-based business conglomerate Suhail Bahwan group is holding about 35 to 40 per cent stake, while the government of Oman owns the rest. The Indian companies, which have shown interest in the company, are three Indian multinational pharmaceutical companies and the Goa-based Maksaar Laboratories.

Sources close to the development said that the companies were in final stages of the talks and due diligence was currently on.

The valuation for the 30 per cent stake could be around Rs 540 crore. NPIC has been looking for strategic tie-ups with Indian pharmaceutical companies, which have strong marketing network in the Middle East to strengthen its sales and distribution in the GCC countries as well as other neighbouring markets.

The company is also keen to have new technologies to enhance its product portfolio. Recently, an industry delegation from Oman under the leadership of its Commerce and Industry minister H E Maqbool Ali Sultan, had representation from NPIC.

The company officials had also initiated talks with Indian counterparts inviting strategic alliances and investments for its proposed market expansion.

NPIC was established in 1995 to manufacture medicines for local use and for export. The health ministry of Oman is the majority stakeholder in the company. At the time of establishment, the total cost of the project is about Rs 5 million. Trial production was started in 1999, with commercial production began in 2000.