What happened?
Cipla South Africa has signed a binding term sheet with Actor Pharma-a privately owned consumer health and generic drug company- to acquire 100% of the issued ordinary shares. The acquisition is expected to cost Cipla an estimated $49 million.
The deal is expected to expand both Cipla’s portfolio in over-the-counter medicines in the country as well as trigger growth in its overall revenue. The company stated that this acquisition is in line with its strategy to leverage cost synergies in the African market.
What was said?
“This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimize the performance of our pipeline”.
Umang Vohra, Global MD & CEO, Cipla Limited
Paul Miller, CEO, Cipla South Africa said, “This is a unique opportunity that helps to build Cipla’s OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter business and continue to provide additional quality medicines for consumers”.
Lynton Lomas, shareholder of Actor said, “We are delighted to transact with a company of Cipla’s stature. With the focused approach of their commercial team, we are excited to see Actor grow from strength to strength in future”.
What’s more
In Cipla’s view, it is expected that the transaction will be completed within four months, subject to the negotiation and signing of the definitive transaction agreements (which are expected to be concluded imminently) as well as receiving regulatory approval from South Africa’s Competition Commission.
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