Julphar sells pharmacies unit in Saudi Arabia

Logo of Gulf Pharmaceutical Industries Co. (Julphar)

Gulf Pharmaceutical Industries Co. (Julphar) announced the sale of Zahrat Al Rawda Pharmacies, a wholly owned subsidiary of Julphar's retail and distribution pharmacies division Planet Pharmacies.

The deal includes the sale of Planet Pharmacies' retail operations in the Kingdom of Saudi Arabia, at a value of SAR 444.1 million (AED 434.2 million), to be paid in cash, the company said, in a statement.

Julphar also indicated that the deal is in line with its strategic efforts to divest non-core assets and expand its portfolio in the MENA region.

Julphar is also studying various strategic options to establish, develop and manufacture its products under development in the Kingdom.

The deal is subject to the fulfillment of the agreement conditions and obtaining the usual approvals for such deals, said the company, expecting it to be completed in the first quarter of 2025 and for the financial impact to appear during the same year.

It indicated that the pharmacies to be sold recorded SAR 367.9 million revenues and SAR 16.7 million net income last year, while their net assets represent 9.1% of the total consolidated assets of Julphar Group as of June 31, 2024.

In 2021, Julphar acquired Pharma SP's 60% stake in Planet Pharmacies, becoming the sole owner of the company.