Riyadh – Mubasher: Al Hammadi Company for Development and Investment has announced signing a memorandum of understanding (MoU) with Sudair Pharma Company for a possible acquisition.

The two-month MoU will explore the possible acquisition of a stake in Sudair Pharma, an owner and developer of a specialised pharmaceutical complex.

“Al Hammadi Company and its Board of Directors have no direct interest in this transaction, [whose…] final price, is subject to the outcome of the financial, legal due diligence, and any other studies which Al Hammadi considers relevant to the transaction,” the investment company said in a filing to the Saudi Stock Exchange (Tadawul).

For its first stage, Sudair Pharma’s complex houses a cancer drug manufacturing plant, which is considered the largest specialised pharmaceutical project in the manufacturing of cancer treatments, both oral and intravenous, in the Kingdom.

Al Hammadi did not reveal or comment on the expected value of the deal or the stake it was looking to acquire.

Located on an area of 77,000 square metres, Sudair Pharma’s project comprises research centres, a training academy, and administrative buildings.

The potential acquisition comes as part of Al Hammadi's growth strategy and the Kingdom Vision 2030 to nationalise advanced industries and technologies.

The deal will also allow Al Hammadi the “opportunity to capitalise on the significant growth potential of the manufacturing and distribution of specialised drugs,” according to the statement.

The MoU will end on 21 June 2018 and may be extended for another term based on mutual agreement between the two companies.