The Moroccan pharmaceutical sector is on the cusp of a significant transformation as Pharma Capital SA prepares to take exclusive control of three major industry players: Afric-Phar, Pharmis, and Partner Lab. The Competition Council has greenlit this acquisition, marking an assertive move by Pharma Capital to expand its footprint and investment within Morocco’s pharmaceutical landscape.
Pharma Capital has secured substantial stakes in each of the acquired companies, enhancing its control and influence. It now holds a commanding 95.35% of Afric-Phar’s shares, 55% of Pharmis, and 4% of Partner Lab. This strategic acquisition aligns with Pharma Capital’s broader plan for consolidation and growth, strengthening its presence in a key sector.
Profiling the acquired companies: Leaders in production, distribution, and R&D
Each of the acquired firms contributes uniquely to Morocco’s pharmaceutical ecosystem. Afric-Phar and Pharmis, both headquartered in Casablanca’s Aïn Sebaâ district, are prominent names in pharmaceutical production and distribution. In 2023, Afric-Phar reported an EBITDA of 150 million dirhams and is on track to reach an annual revenue of 700 million dirhams this year. Pharmis, meanwhile, boasts annual sales of 100 million dirhams, making it a significant contributor to Morocco’s medication supply.
Partner Lab, also based in Casablanca, is a specialist in pharmaceutical research and development (R&D). By acquiring this R&D powerhouse, Pharma Capital not only expands its production capabilities but also positions itself as an end-to-end player in the pharmaceutical value chain, from manufacturing to research.
A 1.9 billion dirham deal
According to insider sources, the acquisition is valued at approximately 1.9 billion dirhams. This high-stakes transaction underscores Pharma Capital’s—and the Sefrioui family’s—dedication to solidifying control, edging closer to finalizing the purchase of shares held by the Chaoui family, former owners of Afric-Phar and Pharmis.
In line with Morocco’s competition law, specifically Article 13 of Law 104-12, the Competition Council has made a non-confidential summary of the transaction available to the public. Announced on November 21, 2024, this publication initiates a 10-day period during which third parties may submit any comments or concerns. This transparency is crucial for compliance with Moroccan economic concentration regulations.
A potential turning point for Moroccan pharma
This acquisition may well mark a pivotal moment for the Moroccan pharmaceutical industry. With its strengthened portfolio, Pharma Capital could drive major advancements in drug production, distribution, and research, setting the stage for Morocco to become a pharmaceutical hub in North Africa. Observers anticipate that Pharma Capital’s bold move could reshape the local market dynamics and boost Morocco’s regional standing.
The impact of this consolidation on the Moroccan market could be far-reaching. Pharma Capital, leveraging Afric-Phar, Pharmis, and Partner Lab, now has the power to influence every level of the pharmaceutical supply chain. All eyes will be on the market as experts and competitors await potential shifts in pricing, innovation, and local manufacturing, while the Competition Council monitors the transaction’s effect on industry competition.
