KUALA LUMPUR (Feb 3): Ekuiti Nasional Bhd (Ekuinas) said it has acquired a controlling stake in Medispec (M) Sdn Bhd based on an enterprise value of RM88.5 million, marking its foray into the pharmaceutical industry.

The government-linked private equity firm, which announced the acquistion in a statement today, did not provide further details on the stake size.  

Medispec is a local pharmaceutical and supplement product distributor, offering more than 100 pharmaceutical drugs and 30 health supplements under both prescription and over-the-counter categories.

Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said the firm’s entry into the healthcare and pharmaceutical space is timely as it looks to capitalise on global megatrends and demographic shifts amid the emergence of Covid-19.

Medispec is one of the leading distributors and marketers of healthcare and pharmaceutical products in Malaysia with a track record of over 35 years, he said, adding that the company has established a strong supply chain and distribution network in the local market, driven by its deep industry knowledge and strong relationship with principals.

“Apart from its large established distribution network across clinics, pharmacies, private and public hospitals, other key considerations contributing to our decision to invest in the company include favourable industry outlook, in-house brand with strong growth prospects and healthy product pipeline.

“These factors will be important in charting Medispec’s future growth plans and we look forward to working closely with them.” Syed Yasir Arafat said.

Medispec CEO Teng Beng Lee said: “As Medispec celebrates its 35-year milestone this year, we are pleased to be part of Ekuinas’ portfolio and I am confident that we can work together to venture into the next phase of growth.

“Apart from growing our home-grown supplement brand Vitamode domestically, we are poised to take our brand regionally to ASEAN countries by leveraging Ekuinas’ expertise. Learning from the pandemic, we will also be putting greater focus on online marketing channels to reach our consumers,” said Teng.

To date, Ekuinas has undertaken cumulative investments in 42 companies since its inception in 2009, representing a total committed investment of RM4.4 billion.