Planet Pharmacies, a joint venture between UAE's Gulf Pharmaceutical Industries (Julphar) and Kuwait's Global Investment House (Global), has acquired Julphar Drug Store and Awafi Drug Store, both Julphar's distribution arm in the UAE for Dhs150m. Julphar CEO Abdul Razzaq Yousef and Global Senior Vice President Shailesh Dash, signed the agreement. Together, Julphar Drug and Awafi Drug, generate a turnover of over Dhs100 million yearly. In accordance with the acquisition agreement, Planet Pharmacies will hold the sole exclusive distribution rights for Julphar products in the UAE for ten years and will take possession of the accounts of Julphar Drug Store and Awafi Drug Store. The agreement includes the distribution rights of Nutricia, the baby food product and Maria Galland, cosmetics products. The Management of Julphar Drug Store and Awafi Drug Store will remain the same and all employees are retained, said Abdul Razzaq Yousef. Julphar and Global ambitious partnership plans include establishing a huge pharmacy chain in the Middle East and North Africa (Mena) region, that will entail an investment of Dhs900 million to set up 2,000 pharmacies within three years. The new holding company, called Planet Pharmacies, aims to become the largest healthcare products retailer in the region and to bring order to the "fragmented and unorganised" retail pharmaceutical industry. The firm's initial capital will be increased to Dhs3 billion and will have Julphar and the private equity funds managed by Global as its founders having 40 per cent and 60 per cent shareholding, respectively. "The company will commence its operations with 65 pharmacies and clinics and aims to spread to the entire Mena by 2010 with 2,000 pharmacies," said Abdul Razzaq Yousuf, chairman of Planet Pharmacies. Shailesh Dash, vice-president, head of private equity at Global and board member of Planet Pharmacies, said the initial capital will be used to either acquire existing stores or open new ones. The GCC pharmaceuticals industry is growing at a rate of over 10 per cent from 1999 through 2004, as against 6 per cent globally. Planet also plans to set up online buying. He said double-digit growth in the industry is expected to remain through the next five to six years.