A LISTED Saudi Arabian company has acquired a 48 per cent stake in Waterford-based pharmaceutical firm EirGen for €19 million.
Saudi Pharmaceutical Industries and Medical Appliances Corp (Spimaco) is one of the largest pharmaceutical companies in the Middle East. The Riyadh-based company, which had previously indicated its intention to expand into Europe, is listed on the Saudi stock exchange.
Describing the deal as “transformative” for the company, EirGen co-founder Patsy Carney said the company had been seeking investment for about a year.
“This investment will allow us to scale up significantly, and move the company, which has focused on the manufacturing and developing of drugs, to the next stage of development. It will help us accelerate our product development programme,” he said.
EirGen, which was incorporated in 2005, is a specialist pharmaceutical company which produces high-potency drugs used mainly in cancer treatment.
Mr Carney said the new equity investment would allow the company to fund its own product development, rather than through partnerships with other pharmaceutical companies as has previously been the case.
The company also plans to increase capacity and develop more products in the field of oncology.
“The ageing population and the global demand for generic drugs holds major potential for growth in this area,” he said.
Mr Carney described the Saudi investment as a “strategic holding” that will not affect the day-to-day running of the company.
EirGen currently employs 50 people in Waterford. The Enterprise Ireland-supported company was founded in 2005 by Mr Carney and Tom Brennan, who had both worked in the pharmaceutical industry.
Mr Carney, Mr Brennan, individual investors and Enterprise Ireland are the company’s main shareholders.
EirGen’s products are already licensed throughout Europe, the United States, Canada and, most recently, Japan, a key advantage for the company, which hopes to increase its presence in global markets, according to Mr Carney.
The company sells its products across 45 countries and has partnerships with pharmaceutical companies across the world, including in South African, Uruguay, and across Europe.
