Eastgate Capital Group (Eastgate), the private equity fund management arm of NCB Capital of Saudi Arabia, said it has aquired a key stake in Egypt-based Sigma Pharmaceutical Industries (Sigma) for EGP220 million ($40 million).

The investment is part of a capital increase to enable the generic pharmaceutical company to expand into other lucrative regional markets, including Saudi Arabia, Algeria, and Sudan.

This transaction represents the second investment of Eastgate Mena Direct Equity LP fund and the first in the healthcare sector, a key target sector for the Fund, said a top official.

Dr Ghazi Al-Rawi, founder and managing partner of Eastgate Capital Group, said, 'Based on our internal analysis and research, we have developed strong interest in the regional healthcare sector and the generic pharmaceutical industry in particular, which not only offers attractive upside but also resilience to economic down turns.'

'Given its distinctive attributes, performance, and management team, Sigma offers us a unique opportunity to tap into the high-potential Egyptian and regional generic pharmaceutical markets,' he noted.

'We are delighted to be investing in such an exciting business, and look forward to working with our partners in Sigma to support the ambitious growth plans of the Company and transform it into a regional player,” he remarked.

Egypt represents one of the largest and fastest growing pharmaceutical markets in the Mena region, growing in value on average at approximately 15 per cent per annum over the last eight years.

Dr El Sayed El Badawy Shehata, the founder, chairman and CEO of Sigma, said: 'We are very proud of our accomplishments at Sigma over the last eight years. This transaction will strengthen our capital base and enable us to take advantage of local and regional growth opportunities.'

'We are very pleased to partner with Eastgate and believe that Eastgate brings a wealth of valuable expertise to Sigma.'

'We believe that the timing of this transaction represents a vote of confidence in Egypt as an ideal investment destination and the pharmaceutical sector in particular as a promising sector,' he added.-TradeArabia News Service