Lupin acquires remaining shares in Pharma Dynamics
The South African pharmaceutical industry is proving to be an attractive target for multinational industry players seeking to secure a foothold into Africa's growing healthcare industry.
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Lupin, India's third largest pharmaceutical company (turnover USD 1.83 billion), announced that it had acquired the remaining 40% stake in South African generics major Pharma Dynamics for an undisclosed sum from its founders. It acquired a 60% equity stake in Pharma Dynamics in 2008.
As per the agreement, the founders will exercise their put option before 31 March 2015 for the 40% equity stake they currently hold. On completion of this transaction, PD will become a wholly owned subsidiary of Lupin, subject to closing conditions.
The acquisition is a shot in the arm for the local pharmaceutical industry and will support Pharma Dynamics' continued expansion onto the continent. It will provide the company with greater access to the international market. Lupin is a top 5 generics player in the US (holding 5.3% market share by prescriptions) and a top 10 player in Japan.
Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations as well as biotechnology products and APIs globally. The Company is a significant player in the cardiovascular, diabetes, asthma, paediatric, CNS, GI, anti-infective and NSAID space and holds global leadership positions in the Anti-TB and Cephalosporin segment.
"Lupin has been a strong partner in our business since 2008 and we have always had an excellent relationship. The fact that Lupin has increased its shareholding in Pharma Dynamics is a huge compliment and augers very well for our continued success," says Pharma CEO, Paul Anley.
"We are delighted with this development, as Africa is fast emerging as one of the growth engines of the future. We deeply appreciate the efforts of Anley in building Pharma Dynamics into a very robust and the fastest growth pharma major in South Africa. We are pleased that Anley has agreed to continue as the CEO," says Lupin CEO, Vinita Gupta.
