The company did not disclose the financial details of the deal.
Alembic Global Holding (AGH) will invest to the extent of 49 per cent equity of Adwiya Mami. After the conclusion of the deal, the company will be renamed as Alembic Mami SPA, an official statement said.
However, the shares of Alembic Pharmaceuticals fell nearly 4 per cent on Monday to close at Rs. 406.10 on the Bombay Stock Exchange.
“The investment in Adwia Mami will give AGH a quick entry to the attractive Algerian market, which is a large African market with a size of $3 billion (of which 70 per cent is generic and 30 per cent is innovator market),” an Alembic statement said.
At present, there are entry barriers and the local manufacturing units get a distinct advantage in marketing the products. Imports are prohibited once there is a local manufacturing, the company said.
Adwia Mami owns a latest formulation plant with annual capacity of 1.2 billion oral solids. The plant has been designed and developed by a leading European pharmaceutical company in line with the cGMP requirements. The plant has enough headroom for future expansion, Alembic said in a BSE filing.
Alembic Mami SPA will be jointly run by Alembic & Mami with equal representation from both on the board. The board has appointed Tagreed Alshunar as the first CEO of the company. A Jordanian national and professional with over 20 years of experience in the pharma industry, Alshunar will be the Alembic nominee. Business LIne