Cipla Acquires South Africa's Actor Pharma

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00:00 The season for mergers and acquisitions in pharma space just does not seem to be ending,

00:04 with Cipla announcing yet another acquisition late last evening of a South African player,

00:10 Act of Pharma, via its wholly-owned subsidiary. The cash consideration has been fixed at around

00:17 400 crore rupees or $49 million. The transaction is expected to be completed within a period

00:24 of 3-4 months. The acquiry, Act of Pharma, is the fifth-largest privately-owned company

00:32 in the over-the-counter space in South Africa and specializes in OTC and generic medicines

00:38 with niche prescriptions as well as consumer brands. Umang Bora, the CEO of Cipla, believes

00:45 that this is going to align with his strategy, bring about cost synergies, and is in line

00:50 with his strategy of getting into the wellness and OTC space. Now, the revenue of Act of

00:57 Pharma in FY23 was around 100 crores. And I was just having this conversation with Vishal

01:04 Manchanda, pharma analyst with Systematics, and he said that the revenue of 100 crores

01:08 is not significant enough to move the needle for Cipla, but however, it needs to be seen

01:14 what is going to come of this acquisition. Mind you, South African business has always

01:20 been a drag on Cipla's business for quite some quarters. So, we need to see how this

01:26 is going to pan out for Cipla. For more such news and updates, stay tuned to BQ Prime.

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