Tuesday, June 10, 2008

Zydus Cadila Acquires South African Firm - June 10, 2008

Zydus Cadila has acquired a 70 per cent stake in South African generic drug firm Simayla Pharmaceuticals. The acquisition was made through Zydus Healthcare SA Pty Ltd, the wholly-owned subsidiary of Zydus Cadila. According to the agreement between the two companies, the remaining stake will continue to be held by Simayla promoter Ben Classen. Simayla''s turnover for the current year is expected to touch ZAR (South African Rand) 40.5 million or Rs 220.7 million. Zydus Cadila chairman and managing director Pankaj Patel described South Africa as a key market. Zydus estimates that the acquisition would open up several opportunities in a market that is estimated to touch $4.62 billion over the next three years. With South Africa providing healthcare to up to 80 per cent of its population, Zydus sees a huge potential for growth in the generic sector, expected to account for 30 per cent of the total drug market by 2011. The products marketed by Simayla fall in the cardio-vascular, anti-infective, respiratory, gastro-intestinal and women''s healthcare segments, which are also the Zydus group''s focus areas, the company said in a statement.

Over the next three years, Zydus plans to launch 50 products in the market. A strong product pipeline for South Africa is already in place with 49 filings, 21 of which have been approved for marketing. With Simayla, the number of acquisitions by the Zydus group since 2003 has gone up to five.

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