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Cadila to acquire 70% stake in South African firm

Cadila to acquire 70% stake in South African firm
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First Published: Mon, Jun 09 2008. 03 05 PM IST
Updated: Mon, Jun 09 2008. 03 05 PM IST
PTI
Mumbai: Pharmaceutical firm Zydus Cadila said it will acquire 70% stake in South Africa-based generic firm Simayla Pharmaceuticals for an undisclosed amount.
“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,” Zydus Cadila Chairman and Managing Director Pankaj R Patel said.
The remaining 30% stake would be held by the promoter of Simayla Pharmaceuticals, Ben Classen, who would continue to head the firm’s operations, the company said in a filing to the Bombay Stock Exchange.
The acquisition was carried out through its wholly owned subsidiary Zydus Healthcare SA PTY Ltd and would open up several opportunities for the group in a market that is estimated to touch $4.62 billion at consumer prices over the next three years.
The generic sector is expected to grow at a CAGR of 19% to touch $1.29 billion and is likely to account for 30% of the total drug market by 2011.
Over the next three years the group plans to launch a total of 50 products in the market. The products would be manufactured at Moraiya, Ahmedabad which was approved by the medicines Control Council, the regulatory authority of South Africa.
Besides, South Africa, Simayla would market the products in Namibia, Angola, Botswana, Swaziland and Mozambique.
Earlier in 2003, Zydus group acquired Alpharma France, it acquired Japan-based Nippon Universal Pharmaceuticals and Brazil-based Quimica e Farmaceutica in 2007 and recently it acquired Laboratorios Combix.
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First Published: Mon, Jun 09 2008. 03 05 PM IST