South African pharmaceutical company Adcock Ingram has announced its acquisition of the Indian pharmaceutical brands of Cosme Farma Laboratories.
The deal, thought to be worth around R708 million, will see Adcock acquire the marketing assets of the pan-Indian branded sales and marketing pharmaceutical business, which is based in Goa and Mumbai, India.
Cosme Farma has a sales force of approximately 900 employees providing nationwide coverage to approximately 150,000 physicians, as well as distribution capabilities in 27 Indian states. It has a portfolio of products in several therapeutic classes, including gynaecology, gastro-intestinal and dermatology.
Adcock Ingram has had a manufacturing presence in India since 2007 and recently opened a local sales, marketing and administration office. One of the first strategic objectives of the local administration office was to facilitate the acquisition of a domestic pharmaceutical company.
Adcock Ingram said the acquisition will provide it with the appropriately sized vehicle to enter the highly fragmented and competitive Indian market with its own brand of products and capabilities.
Commenting on the deal, Adcock Ingram’s deputy CEO and financial director Andy Hall said: “In line with our growth strategy, we have identified India as a key growth market in which to position ourselves for the sustainability and diversification of the business, and this transaction sees us take a step towards realising that strategy.
“This is a large domestic market with an emerging middle class which will be a major driver of economic growth in the country and we are looking to tap into that growth and extend our reach into the Indian market.”
Cosme Menezes, the current owner of Cosme Farma Laboratories, added: “We have nurtured and built these brands over four decades. We are confident that Adcock Ingram as a reputable multinational will take these brands to higher levels of sustainable growth in the Indian pharmaceutical market.”
Adcock Ingram has a market capitalisation of about R9 billion and has a 10 per cent share of the private pharmaceutical industry in South Africa. The company’s range of branded and generic prescription and OTC products covers a broad range of therapeutic classes.
