In a strategic move that amplifies its commitment to the Over-The-Counter (OTC) business, Cipla South Africa, a 100% owned subsidiary of Cipla Limited (BSE: 500087; NSE: CIPLA EQ), has signed a binding term sheet to acquire Actor Pharma (Pty) Limited. This acquisition positions Cipla as a leading healthcare player in South Africa, targeting growth opportunities and leveraging cost synergies in the lucrative South African market.

Actor Pharma: The Fast-Growing Private OTC Player in South Africa

Founded in 2009, Actor Pharma quickly ascended to become the 5th largest privately-owned OTC player in the South African market. Specializing in OTC and generic medicine, Actor Pharma boasts strong consumer brands and has identified niche prescription markets in categories such as Women’s Health, Nasal, Cough & Cold, and Baby & Child. The company delivered an impressive revenue of R234 million in its last financial year (FY23), marking strong double-digit growth.

Cipla’s Global and South African Leadership Speak

Umang Vohra, the Global MD & CEO of Cipla Limited, commented on the acquisition, stating, “This aligns perfectly with our strategy to strengthen our OTC and wellness portfolio.” Paul Miller, CEO of Cipla South Africa, emphasized the acquisition’s importance in providing a more balanced revenue contribution between prescription and OTC businesses. Both leaders see this as a unique opportunity to optimize performance and unlock future growth prospects in South Africa.

Actor Pharma Excited for Future with Cipla

Lynton Lomas, a shareholder of Actor Pharma, expressed enthusiasm about the transaction, stating, “We are delighted to transact with a company of Cipla’s stature.” He expects Actor to grow from strength to strength, benefiting from Cipla’s focused commercial approach.

Upcoming Steps: Regulatory Approvals Awaited

The acquisition is anticipated to close in the next three to four months, subject to the negotiation and signing of definitive transaction agreements and regulatory approval from South Africa’s Competition Commission. This Cipla-Actor Pharma deal stands as a notable development in the healthcare sector, promising to reshape the landscape of OTC and generic medicines in South Africa.

  Actor Pharma, Cipla, Lynton Lomas, Pharma acquisition news, South Africa, Umang Vohra