International Company for Medical Industries (ICMI) said on Wednesday that it is in the middle of negotiations to overtake a 5% stake in two pharmaceutical companies.

The two companies are United Group for Production of Medical Necessities and New Alpha for Production Of Medical Supplies , it said a bourse statement.

"This step comes in the frame work of the company's strategy to establish an integrated entity for producing medical necessities," said Mohamed Ragab Hassanein, a board member.

United Group and New Alpha both operate with EGP6 million capital each, added Hassanein.