Cipla to Acquire South African OTC Pharma Leader Actor Pharma

Although, the company did not disclose the financial terms, however, it is said to acquire 100% of the issued ordinary shares of Actor Pharma, the Ace drug company revealed in a regulatory filing.

In a significant move, Cipla South Africa, a subsidiary of Ace Mumbai-based pharmaceutical company Cipla, has officially signed a binding term sheet to acquire Actor Pharma, a prominent player in the over-the-counter (OTC) and generic medicine sector.

Although, the company did not disclose the financial terms, however, it is said to acquire 100% of the issued ordinary shares of Actor Pharma, the Ace drug company revealed in a regulatory filing.

This move by Cipla is said to impact its presence in the OTC market and strengthen its position as a key player in South Africa's healthcare industry. While Actor Pharma's legacy in OTC and generic medicines will continue to thrive under its new ownership.

Moreover, this step also aligns with Cipla's vision to expand its footprint in the South African market, delivering quality healthcare solutions to its citizens. The transaction is expected to conclude within the next three to four months.

Reports further reveal that many industry experts are keeping an eye on this acquisition, which may have a tremendous impact on the South African pharmaceutical landscape. It is further expected to enhance the availability of quality OTC and generic medicines to South African consumers.

Sharing his views on the acquisition, Paul Miller, CEO of Cipla South Africa, said, 'œThis 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.' 

Commenting on the same, Cipla Ltd Global MD and CEO Umang Vohra said, "This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimise the performance of our pipeline." 

Founded in 2009, Actor Pharma has rapidly risen to become the fifth-largest privately owned OTC player in the South African pharmaceutical landscape. Specialising in OTC and generic medicines, the company has successfully carved out a niche for itself with robust consumer brands and a focus on specific prescription markets, including women's health, nasal, cough and cold, baby and child categories.

The South African OTC player, recorded revenue of R234 Mn (approximately INR 121.49 Cr.) in FY23, with its innovative pipeline and strong financial performance, driven by strong double-digit growth.

Expressing his views, a shareholder of Actor Pharma, Lynton Lomas said, 'œWith the focussed approach of their commercial team, we are excited to see Actor grow from strength to strength in future.'