Agreement with Georgia Healthcare Group
Integrated Diagnostics Holdings Plc
Company Announcement
17 December 2018
IDH subsidiary Biolab signs agreement with Georgia Healthcare Group to establish a Mega Lab
The facility will be the largest of its kind in Georgia and the region with enough capacity to deliver high quality clinical and pathology tests to the country's entire population
(Cairo and London) - Integrated Diagnostics Holdings ("IDH" or "the Company"), a leading consumer healthcare company with operations in Egypt, Jordan, Sudan and Nigeria, announced today that its Jordan-based subsidiary Biolab has entered into an agreement with Georgia Healthcare Group PLC (GHG) to establish a Mega Laboratory (Mega Lab) in the Georgian capital of Tbilisi.
Under the agreement, Biolab will provide GHG with (1) training and management services including the implementation of Biolab's technological platforms and laboratory information management systems (LIMS) and (2) consultancy and support to achieve Joint Commission International Accreditation (JCI) for the Mega Lab within two years from the expected launch date.
Biolab will retain up to 10% equity ownership in the Mega Lab and will receive a fixed annual management fee and a share of annualized profits to cover costs and expenses, in addition to an annual service fee.
The 7,500 square meter, multi-disciplinary Mega Lab will be the largest of its kind in Georgia and the Caucasus region and will be equipped with state-of-the-art technology covering the full suite of clinical and pathology tests. The Mega Lab will initially serve GHG's network of over 37 hospitals and 16 district polyclinics utilizing one-third of the facility's capacity, with plans to develop a B2B network of healthcare providers outside the Group to reach full utilization.
Commenting on the agreement, IDH's Chief Executive Officer Dr. Hend El Sherbini said:
"We are truly excited to be partnering up with Georgia's leading healthcare group and help usher in a new level of service offering to the Georgian population as well as unlock Group-wide operational efficiencies for GHG. IDH's decades-long experience and our position as the operators of the sole JCI-accredited Mega Labs in Egypt and Jordan allow us to provide the necessary know-how, technical training and systems to help this venture succeed. I wish to thank the team at GHG for placing their confidence in us, and I look forward to our Groups' continuous collaboration and support."
-Ends-
About Integrated Diagnostics Holdings
IDH is a leading consumer healthcare company in the Middle East and Africa with operations in Egypt, Jordan, Sudan and Nigeria. The Group's core brands include Al Borg and Al Mokhtabar in Egypt, as well as Biolab (Jordan), Ultralab and Al Mokhtabar Sudan (both in Sudan) and Echo-Scan (Nigeria). A long track record for quality and safety has earned the Company a trusted reputation, as well as internationally recognised accreditations for its portfolio of over 1,400 diagnostics tests. From its base of 405 branches as of 30 June 2018, IDH will continue to add laboratories through a Hub, Spoke and Spike business model that provides a scalable platform for efficient expansion. Beyond organic growth, the Group's expansion plans include acquisitions in new Middle Eastern and African markets where its model is well-suited to capitalise on similar healthcare and consumer trends and capture a significant share of fragmented markets. IDH has been a Jersey-registered entity with a Standard Listing on the Main Market of the London Stock Exchange (ticker: IDHC) since May 2015.
IDH's forward-looking strategy rests on leveraging its established business model to achieve four key strategic goals, namely: (1) continue to expand customer reach; (2) increase the number of tests per patient; (3) expand into new geographic markets through selective, value-accretive acquisitions; and (4) introduce new medical services by leveraging the Group's network and reputable brand position. Learn more at idhcorp.com.
About Georgia Healthcare Group PLC
Georgia Healthcare Group PLC is a UK incorporated holding company of the largest healthcare services provider in the fast-growing, predominantly privately-owned, Georgian healthcare services market. GHG's leadership position is underpinned by offering the most comprehensive range of inpatient and outpatient services targeting the mass market segment through its vertically integrated network of 37 hospitals and 16 district polyclinics. GHG is the single largest market participant, accounting for 25% of total hospital bed capacity in the country, as of 30 September 2018. GHG is also the largest pharmaceuticals retailer and wholesaler in Georgia, with approximately 30% market share by revenue. GHG is the second largest provider of medical insurance in Georgia with a 27% market share based on net insurance premiums earned and approximately 158,000 insurance customers as at September 2018. GHG employed a total of c.15,500 people as at 30 September 2018, including c.3,600 physicians and 2,900 pharmacists.
Contact
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IDH |
+20 (0)2 3345 5530 |
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Sherif El-Ghamrawi, Investor Relations Director |
+20 (0)10 0447 8699 |
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Hudson Sandler (International Media relations) |
+44 (0) 207 796 4133 |
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Dan de Belder Bertie Berger |
idh@hudsonsandler.com |
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