Target Information

Foursan Group has successfully exited its investment in Polymedic, a prominent generics manufacturing company based in Morocco. Founded in 2001, Polymedic boasts a diverse portfolio of over 200 registered products spanning 12 therapeutic areas. The company has recently achieved record revenues and profitability, highlighting its robust operational performance.

Over the period of Foursan Group’s investment, Polymedic expanded its workforce by 67%, resulting in a total of 250 employees, with 56% of the workforce being female. This growth underscores Polymedic’s commitment to inclusive development and its adherence to best-in-class environmental, social, and governance (ESG) standards.

Industry Overview in Morocco

The pharmaceutical industry in Morocco has witnessed significant growth over the past decade, driven by increasing healthcare demands and government initiatives aimed at enhancing healthcare access and pharmaceutical production. As the country aims to achieve self-sufficiency in pharmaceuticals, domestic production is gaining momentum, bolstered by supportive regulations and investment in local manufacturing facilities.

Moreover, Morocco’s strategic location offers access to both European and African markets, positioning the country as a potential hub for pharmaceutical exports. The Moroccan government has implemented various policies to encourage foreign direct investment in the healthcare sector, further enhancing the region's attractiveness for investors.

Despite challenges, such as the need for continuous innovation and adaptation to global pharmaceutical trends, the Moroccan market remains ripe with opportunities. Opportunities in generics and biosimilars have become increasingly relevant, especially as healthcare needs evolve and patient populations grow.

In recent years, the focus on ESG compliance has also shaped the industry, with companies increasingly prioritizing sustainability and responsible governance in their operations. This trend aligns with the growing global emphasis on ethical business practices, particularly in the healthcare sector.

Rationale Behind the Deal

The decision for Foursan Group to exit its investment in Polymedic comes after a successful investment period marked by growth and profitability. The partnership with NBK Capital Partners, which co-invested alongside Foursan in 2019, ultimately led to a lucrative exit to a consortium of Moroccan business leaders specializing in the pharmaceuticals and healthcare sectors.

Foursan’s leadership noted the effective management and operational excellence of Polymedic’s senior leadership team, particularly their resilience during the COVID-19 pandemic, which posed considerable challenges from 2020 to 2022. This exit is a testament to the company’s strong market position and the upsurge in its operational fundamentals.

Investor Information

Foursan Group is a prominent private equity firm in the Middle East, specializing in strategic investments across various sectors, including healthcare, technology, and consumer goods. Foursan Capital Partners II (FCP II), the fund involved in this transaction, focuses on growth-oriented investments and seeks to partner with companies that demonstrate a strong commitment to sustainability and social responsibility.

Throughout its history, Foursan has established a reputation for its strategic insights and effective portfolio management, enabling its portfolio companies to achieve remarkable growth. The firm takes a hands-on approach, working closely with company management teams to drive operational improvements and execute growth strategies successfully.

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The exit of Foursan Group from its investment in Polymedic presents a multifaceted view of the transaction's merits. On one hand, the significant growth in Polymedic's revenues and employee base underscores the company's operational success and potential for continued market leadership, particularly in the generics sector.

The successful management of challenges, especially during the pandemic, and adherence to ESG principles further enhance the investment's attractiveness. Foursan's strategic timing for the exit, having maximized operational growth and profitability, indicates sound judgment in capitalizing on the favorable market dynamics.

Moreover, transferring ownership to a consortium of local businesspersons with substantial knowledge of the pharmaceuticals industry signals a positive transition, likely benefiting Polymedic's future initiatives and alignment with local market needs. This speaks to the investor's commitment to long-term value creation, thereby reinforcing Polymedic's staying power in a competitive landscape.

In conclusion, the transaction reflects a well-executed investment which not only offered lucrative returns for Foursan Group but also contributes positively to the pharmaceutical landscape in Morocco. With ongoing industry dynamics favoring local production and adherence to higher ESG standards, Polymedic is poised for sustained growth post-exit.

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