Indian pharmaceutical company Cipla’s wholly owned subsidiary, Cipla Medpro South Africa (Cipla South Africa), has signed a binding term sheet to acquire complete issued ordinary shares of Actor Pharma to bolster its over-the-counter (OTC) product portfolio.
The deal is part of Cipla South Africa’s strategy to expand growth plans and utilise cost synergies in the South African region.
Cipla South Africa is to acquire Actor Pharma in a deal reputedly worth R900m ($48.6m), CNBC reported.
Established in 2009, Actor is the fifth-largest OTC player in the private market in the region.
The company focuses on OTC and generic medicines with established consumer brands and has created niche prescription markets in women’s health, nasal, cough and cold areas.
It also has an innovative product pipeline and recorded a revenue of R234m in the financial year 2023 (FY23) with robust growth in double-digit figures.
Cipla South Africa CEO Paul Miller said: “This is a unique opportunity that helps to build Cipla’s OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter business, and continue to provide additional quality medicines for consumers.”
Subject to regulatory approvals, the deal is anticipated to conclude in the coming three to four months.
Actor shareholder Lynton Lomas said: “We are delighted to transact with a company of Cipla’s stature.
“With the focused approach of their commercial team, we are excited to see Actor grow from strength to strength in future.”
Cipla South Africa manufactures therapies at reasonable costs for the public and private sectors in a bid to progress healthcare for all people.