State-owned pharmaceutical company PT Kimia Farma has announced its acquisition of Dawaa Medical Limited Company as an initial step to expanding its business in Saudi Arabia.

Under the acquisition terms, Kima Farma has taken over 60 percent of Dawaa shares worth 38 million Saudi riyal (US$10 million). The new name for the company is Kimia Farma Dawaa.

“It is an initial step to expand into Saudi Arabia with hopes of entering the African market,” Kimia Farma president director Honesty Basyir said in Jakarta on Monday, after the signing ceremony for the shares takeover agreement, kompas.com reported.

Honesty said the new acquisition in Saudi Arabia was part of its efforts to support the government’s initiative to improve healthcare services to Indonesian hajj pilgrims.  

Honesty said that Al-Dawaa currently operates 31 drugstores, mostly in Mecca and Medina, and that following the acquisition, Kima Farma Dawaa would increase the number of drugstores to 90 outlets.

“We are expanding our business to Saudi Arabia because of its promising market," she added, saying that annual turnover could reach $20 billion by 2020. (bbn)