SOUTH Africa’s third-biggest pharmaceutical company, Cipla Medpro, on Tuesday delisted from the JSE, as it concluded its $4.46bn deal with Indian drug company Cipla.
Shareholders voted overwhelmingly in favour of Cipla’s acquisition of 100% of Cipla Medpro on May 15.
It leaves just three pharmaceutical counters on the JSE — Aspen Pharmacare, Adcock Ingram and Litha Healthcare.
Cipla CEO Subhanu Saxena, who was in South Africa last week, said on Tuesday that his company’s acquisition of Cipla Medpro would strengthen the firm’s presence in Africa.
"Our relationship with Cipla Medpro spans nearly two decades, and so the time is right to combine our strengths. Together we will create a sustainable pharmaceutical company able to compete effectively against multinational companies in a rapidly changing pharmaceutical industry," he said.
There would be an increased focus on key African markets, including South Africa, Nigeria and East Africa, he said in an interview with Business Day last week.
Analysts had predicted that the African pharmaceutical market would reach $30bn-$40bn within seven years, he said in that interview.
Cipla Medpro concluded a supply agreement with Cipla in 2005, that allowed it to import and distribute Cipla’s generic medicines in South Africa. About 85% of the generic medicines Cipla Medpro sold in South Africa were sourced from Mumbai-based Cipla under this arrangement.
Mr Saxena said he met "key stakeholders" on his most recent visit to South Africa, including the Medicines Control Council’s registrar Mandisa Hela, to "further strengthen ties between the two countries". The council is a statutory body charged with regulating medicines, responsible for ensuring the drugs on the South African market are safe and effective. It approves new products and inspects manufacturing facilities. For a company like Cipla, which told Business day last week that it intended to expand its product portfolio in South Africa, understanding the regulatory environment is key to doing business here.
Cipla Medpro joint CEO Mark Sardi said the company expected to have greater access to Cipla’s resources, including new technology and products. Cipla would also expand the manufacturing capacity of Cipla Medpro’s facility in Durban, he said.
"Cipla Medpro can now fully leverage Cipla India’s formidable strengths in research and development, managing regulatory processes, and manufacturing. This allows us to increase access to affordable healthcare for all South Africans by providing excellent service; further broaden our product offering; and offer safe and effective medicines at an affordable price," said Mr Sardi.
Cipla Medpro joint CEO Mark Sardi. Picture: FINANCIAL MAIL
SOUTH Africa’s third-biggest pharmaceutical company, Cipla Medpro, on Tuesday delisted from the JSE, as it concluded its $4.46bn deal with Indian drug company Cipla.
Shareholders voted overwhelmingly in favour of Cipla’s acquisition of 100% of Cipla Medpro on May 15.
It leaves just three pharmaceutical counters on the JSE — Aspen Pharmacare, Adcock Ingram and Litha Healthcare.
Cipla CEO Subhanu Saxena, who was in South Africa last week, said on Tuesday that his company’s acquisition of Cipla Medpro would strengthen the firm’s presence in Africa.
"Our relationship with Cipla Medpro spans nearly two decades, and so the time is right to combine our strengths. Together we will create a sustainable pharmaceutical company able to compete effectively against multinational companies in a rapidly changing pharmaceutical industry," he said.
There would be an increased focus on key African markets, including South Africa, Nigeria and East Africa, he said in an interview with Business Day last week.
Analysts had predicted that the African pharmaceutical market would reach $30bn-$40bn within seven years, he said in that interview.
Cipla Medpro concluded a supply agreement with Cipla in 2005, that allowed it to import and distribute Cipla’s generic medicines in South Africa. About 85% of the generic medicines Cipla Medpro sold in South Africa were sourced from Mumbai-based Cipla under this arrangement.
Mr Saxena said he met "key stakeholders" on his most recent visit to South Africa, including the Medicines Control Council’s registrar Mandisa Hela, to "further strengthen ties between the two countries". The council is a statutory body charged with regulating medicines, responsible for ensuring the drugs on the South African market are safe and effective. It approves new products and inspects manufacturing facilities. For a company like Cipla, which told Business day last week that it intended to expand its product portfolio in South Africa, understanding the regulatory environment is key to doing business here.
Cipla Medpro joint CEO Mark Sardi said the company expected to have greater access to Cipla’s resources, including new technology and products. Cipla would also expand the manufacturing capacity of Cipla Medpro’s facility in Durban, he said.
"Cipla Medpro can now fully leverage Cipla India’s formidable strengths in research and development, managing regulatory processes, and manufacturing. This allows us to increase access to affordable healthcare for all South Africans by providing excellent service; further broaden our product offering; and offer safe and effective medicines at an affordable price," said Mr Sardi.
