Mumbai: India’s Cadila Healthcare Ltd said on Monday it has acquired 70% stake in South Africa’s Simayla Pharmaceuticals, its second buy in less than a fortnight. The acquisition will be effected through its unit, Zydus Healthcare SA Pty Ltd, Cadila said in a statement.
The African firm recorded revenues of 18.6 million South African rand (about Rs10 crore today) in 2007 and is expected to grow this to 40.5 million rand in 2008, Cadila said.
The remaining 30% stake in Simayla will be held by its founder Ben Classen, who will continue to head the operations, Cadila said.
“South Africa has been one of our key focus markets and Simayla’s expertise and promising growth will unlock value for us as we look to consolidate and grow our business in this market rapidly,” managing director Pankaj Patel said.
The combination plans to launch 50 drugs over the next three years in South Africa, where the drug market is expected to touch $4.62 billion (about Rs19,800 crore) by 2011, Cadila said. These drugs are to be produced at Cadila’s Ahmedabad unit, it added.
This is Cadila’s second buy this year after Spain’s Laboratorios Combix, announced on 30 May.
Cadila shares ended Monday 2.01% lower at Rs289.80 in a weak Mumbai market.