NMC Health regains potency with IVF acquisition

Still smarting from its impotent effort to buy rival Al Noor Hospitals, NMC has satisfied itself with a 51% stake in fast-expanding Fakih IVF Group, which it said it could increase over time.

With fertility treatments one of the leading drivers of medical tourism in the UAE, NMC said the addition of Fakih IVF to its existing ownership of Clinica Eugin fertility care provider in Europe will position the group as the "destination of choice for fertility treatments".

Fakih IVF, whose founder Dr Michael Fakih will remain as a 49% shareholder, generated earnings before interest, tax, depreciation and amortisation (EBITDA) of $25m in the nine months ended 30 September 2015, an increase of 20% year-on-year according to unaudited management accounts.

As the Middle East market leader for IVF services, Fakih performs over 4,000 cycles per year and offers the only full service genetics laboratory in the region.

Adding to centres in Abu Dhabi and Dubai, three additional UAE centres are planned to open their doors during 2016 in Al Ain city, the Western region of Abu Dhabi Emirate and the Emirate of Sharjah, with centres also expected in both Qatar and Oman before the end of 2016.

"The combination with Fakih IVF is expected to be highly synergistic with significant potential for cross-referral of patients and transfer of best practices and technologies within NMC's Maternity & Fertility vertical," NMC said.

Shares in NMC stiffened 2.2% to 780p by 0905 GMT on Tuesday.