Litha Healthcare Group CEO Selwyn Kahanovitz commented, "We are excited to build on the brand presence which OTC Pharma South Africa has created within the natural healthcare market. The group will also greatly benefit from the international and local company's in-depth knowledge and expertise, as well as its prominent industry profile."
OTC Pharma South Africa is renowned for its product range, which targets consumers and healthcare professionals and won the Dischem Supplier of the Year Award in 2010 and 2011. It includes brands such as Marcus Rohrer Spirulina; Similasan; Diabecinn; Picksan; Rescue; Spatone; Cetralin, Rock Hard Weekend; Bye Wart and Bye Mouth Ulcer.
Kahanovitz adds, "The group will also further benefit from its established sales, warehousing and distribution infrastructure, extensive knowledge of the health and wellness market, its agility and speed to market with R&D innovation and its access to leading research in natural medicines from numerous global suppliers."
The group plans to maximise the synergies of the two businesses, as part of its long-term strategy to create a significant presence within the private and public health sector in South Africa, with growth potential for export of products and expertise into Africa.
The agreement, which became effective from 15 December 2011, will see OTC Pharma South Africa being integrated into Litha's Pharma Division to assist the group in attaining one of its strategic objectives; that of being one of South Africa's leading listed, empowered healthcare companies.
Commenting on the announcement, Mario Oldani, CEO of OTC Pharma International says, "I believe the acquisition of the SA subsidiary is well timed, as it is enjoying growth. However, we came to a crossroads where we needed to assess the way forward to reach the next level for our brands in South Africa in order to align with our international growth strategy."
"The group's infrastructure on all levels of management, procurement, regulatory and pharmaceutical Good Manufacturing Practice (GMP) standards will assist in ensuring the brands compliance with proposed new legislation for the Complimentary and Alternate Medicines (CAMs) nutraceutical market. We see OTC Pharma South Africa growing exponentially through the injection of BEE driven management expertise, the financial resources to support both traditional pharmacy and healthcare distribution into wider FMCG and doctor detailing initiatives and the growth and expansion locally and into the Sub-Saharan African marketplace."
The agreement will also assist the group in achieving a key objective of bridging the gap between traditional health shops and pharmacy chains to mass market and dispensing doctors, by maximising its footprint within these markets.
Litha Healthcare Group wishes to advise that its announcement of the acquisition is in no way related to the cautionary statement issued by the group via SENS on 14 December 2011.
