One of Europe�s largest manufacturers of generic drugs, Chemo Company, has signed an agreement with the Barkat Pharmed Company to invest in one of the subsidiaries of the Iranian pharmaceutical holding.

The first phase of the deal, signed on Monday in Tehran, entails an investment of more than $15 million by the European side to establish a plant for producing pharmaceutical raw materials, Donya-e-Eqtesad reported.

The Switzerland-based Chemo Company, established in 1977, is engaged in trading active pharmaceutical ingredients and is a subsidiary of the multinational Grupo Insud. The pharmaceutical sector is one of the most attractive sectors for investment in Iran, considering the country�s potential.

Iran is the largest manufacturer of generic chemical drugs across the Middle East and North Africa with a market of 79 million people. Chemo is the second foreign company to finalize talks for investment in a post-sanction pharmaceutical sector.

Late in 2015, Danish pharmaceutical giant Novo Nordisk signed a memorandum of understanding with Iran�s Health Ministry to build a $78 million manufacturing plant in Iran.

Novo Nordisk has been manufacturing in Iran through a local partner since 2002, serving about 700,000 Iranian diabetics through its manufacturing partnership.

However, the latest plant would see the first among giant pharmaceutical firms to set up its own factory in Iran.

By Financial Tribune