Diversified healthcare firm VPS Healthcare’s medicine manufacturing arm, LifePharma, will explore entering into the European and American markets, as part of a major step towards transforming the region as a hub for pharmaceutical production and export.

Initially, the company will be exporting around 25,000 bottles of Acetazolamide collaborating with Eywa, a leading pharmaceutical production company in the US, company officials said at Arab Health Summit, held recently at the Dubai World Trade Centre in the UAE.

The first batch of the medicines, locally produced at LIFEPharma’s production plant in Jebel Ali, was exported in January. Subsequently, the unit started manufacturing and exporting more products, particularly in the cardiovascular and diuretic therapy areas.

Apart from this, at Arab Health, LIFEPharma struck a major deal with leading European multinational company, XO Laboratory, based in France.

As per the MoU signed between the entities, LIFEPharma will be producing a significant number of XO’s products locally in the UAE and import unique medicines such as Alendronic acid solution, Mynocycline, Alginic acide sachets and Ketoprofen/Omeprazole from France to the UAE market.

The MoU was signed by LIFEPharma CEO Dr Madgy Fahmy and XO Laboratory director general Karine Pinon in the presence of VPS Healthcare chairman and managing director Dr Shamsheer Vayalil.

In 2019, LifePharma had signed a significant deal with Canadian giant Apotex, the largest producer of generic medicines in North America, to produce generic medicines to be exported to North American markets. The pharmaceutical manufacturer has started producing a billion tablets annually to be exported to North America. Dr Shamsheer said that LifePharma has become a crucial player in the Middle East and has contributed immensely to transform the region in becoming a hub for pharmaceutical production.

“The year 2019 has seen one of our products being exported to the North American markets. It was a great achievement for us. In 2020, we will be exporting six more products to North America. We are the first in the region to do this. This year, we expect to get into more markets and improve our global footing,” he added.

Speaking about the tie-up, Pinone said XO Laboratory was honoured and privileged to partner with LIFEPharma. “We believe that our joint venture will make a difference for the patients in the future. We are confident our agreement will pave way towards a higher level of collaboration between France and the UAE,” he added.

Meanwhile, Amanat, a Dubai-based investment firm, has stalled discussions to acquire a stake in VPS Healthcare Group. The company announced the decision last month, throwing cold water on a deal that was initially envisioned to expand its healthcare portfolio in the region.

“Both parties have agreed to stop their discussion in relation to the transaction,” Amanat said in a statement to the Dubai bourse, without disclosing further details.

“Amanat will continue to assess other opportunities aligned with its investment strategy to establish platforms that can grow and scale profitability in order to build long-term value for its shareholders,” the company added.

The collapse of the talks came just as another UAE-based healthcare company, NMC Health, has found itself in hot water after American short-seller Muddy Waters questioned the London-listed firm’s finances and sent shares plummeting more than half in December.

Amanat, whose investments include hospitals and universities in Dubai and Abu Dhabi, had earlier announced it was in talks to acquire a “strategic” stake in VPS.

The Dubai-listed company wanted to expand its presence in the region, where the healthcare market was valued at more than $21 billion in 2019 and estimated to hit more than $33 billion by 2024.

Founded in 2007 by Dr. Shamsheer Vayalil, VPS operates a chain of hospitals and medical centres in the Middle East, Europe and India. It operates more than 20 hospitals and 125 medical centres across the Middle East and India.