ADQ, one of the region’s largest holding companies, is significantly expanding and strengthening its healthcare and pharma portfolio, as it continues to diversify its portfolio with investments across non-oil sectors.

The Abu Dhabi holding company early this year made two strategic investments as it acquired Pharmax Pharmaceuticals and invested in Biocon Biologics. This was followed by its decision to merge its healthcare support services entities, Rafed and Union71, within Pure Health.

The company agreed to acquire Pharmax Pharmaceuticals, a UAE-based pharmaceutical company which manufactures and markets affordable, branded generic medication, and also to invest in a minority stake in India’s Biocon Biologics, a subsidiary of Biocon Ltd that specialises in developing, manufacturing and marketing high-quality, affordable biosimilars across global markets.

According to the company, through its investment in Pharmax, ADQ strengthens its healthcare portfolio by addressing a shortage of affordable medication to create a cost-efficient healthcare system in the UAE that balances cost and quality.

At the same time, this equity investment in Biocon Biologics represents an important step towards developing cutting-edge expertise in high quality biosimilars to target chronic conditions such as diabetes, oncology, immunology, etc.

The company also announced that after these two investments are complete, ADQ will have investments across the healthcare and pharma value chain – beginning with pharmaceutical development and manufacturing with Pharmax, patient care through Abu Dhabi Health Services Company (SEHA), laboratory testing services through Union71 and reimbursement through National Health Insurance Company (Daman).

“In addition, a minority stake in Biocon Biologics will give us an opportunity to get exposure to high growth biosimilars segment. ADQ’s extensive portfolio also extends to pharmaceutical procurement, handling and logistics with its ownership of Rafed, Abu Dhabi Ports, and Abu Dhabi Airport Company as well as its investment in Aramex,” ADQ said in a statement.

Mohamed Hassan Alsuwaidi, Chief Executive Officer of ADQ, said: “Our long-term ambition for ADQ’s healthcare and pharma portfolio is to create a provision-centred, digitally enhanced ecosystem that is anchored in world-class clinical excellence, effective population health management and resilient supply chain infrastructure.”

“We are well on our way to building out a supply chain that ensures greater accessibility of healthcare and pharma products and supplies for the people of Abu Dhabi and beyond. As a local producer of generic medication, Pharmax will provide us with a high-quality facility, deep sector knowledge and strong relationships for growing pharma manufacturing in the UAE. Biocon Biologics proven R&D track record, manufacturing scale and commercial partnerships worldwide provide us with an opportunity to benefit from the biosimilar sector that is set to grow as patents of originator biologics expire and patients demand lower priced drugs globally,” he added.

Dr Kiran Mazumdar-Shaw, Executive Chairperson of Biocon, said: “We welcome ADQ as our investment partner as we pursue our shared goal of expanding access to high quality affordable biopharmaceuticals to patients across the globe. We are committed to pursue our affordable innovation model to generate savings for the healthcare systems worldwide. This investment is an endorsement of the value that Biocon Biologics business has built as a fully integrated pure-play biosimilars company and will enable us to expand our capabilities further.”

Madhukar Tanna, Chief Executive Officer of Pharmax Pharmaceuticals, commented: “We established Pharmax with the belief that patients all over the world deserve access to affordable, effective medications. Joining forces with ADQ will allow us to increase the availability of locally manufactured, quality, affordable generic and complex drugs. At the same time, we will have greater opportunities to increase availability of pharmaceuticals in the UAE while further expanding our distribution in the region.”

Rafed, Union71 mergeD

Taking forward its expansion strategy, ADQ early last month, signed an agreement to merge its healthcare support services entities, Rafed and Union71, within Pure Health.

Under the terms of the agreement, ADQ will transfer its ownership of Rafed and Union71 to Pure Health and receive a stake in the new end-to-end healthcare services leader providing hospital management, medical screening, lab testing and healthcare procurement.

The company will be well positioned to serve hospitals, integrated healthcare systems, healthcare suppliers, the federal government, and others across the spectrum of care throughout the UAE.

Alsuwaidi, said: “By merging Rafed and Union71 within Pure Health, we continue advancing ADQ’s strategy to grow a provision-centred healthcare and pharma cluster that delivers clinical excellence, optimal healthcare system spend and effective population health management in the UAE. This transaction provides a unique opportunity to create a platform for healthcare support services with greater scale and further synergies in delivering reliable and innovative medical screening and lab testing, medical equipment distribution and group purchasing organisation services.”

Farhan Malik, Chief Executive Officer of Pure Health, commented: “Pure Health has become one of the largest healthcare contributors in the UAE, demonstrated through our commitment to excellence and enhancing the quality of care and patient experience in the UAE.  As an established lab operator, and now a trusted healthcare partner in hospital management, we are excited to be broadening our services portfolio under the new merger with Rafed and Union71. We are confident that ADQ’s large portfolio and access to the Abu Dhabi healthcare market will grow our operations and reach across the UAE healthcare ecosystem.”

Malik added: “Pure Health will play a key role in preventive health care through early diagnostics, personalised medicine, empowered by healthcare informatics and digital intelligence.”