Zydus Cadila acquires majority stake in Simalaya Pharmaceuticals

Simalaya recorded revenues of South African Rand (ZAR) 18.6 million in 2007 and is expected to touch ZAR 40.5 million in 2008.

The aquisition of Simalaya is expected to open up several opportunities for the group in a market that is estimated to touch $4.62 billion at consumer prices over the next three years.

 

With the public sector providing healthcare for up to 80 per cent of the population, there is a huge potential for growth in the generic sector as the government focuses on improving healthcare access and cutting healthcare costs, said a release from the company. The generic medicines sector is expecting to grow at a CAGR of 19 per cent to touch $1.29 billion and is likely to account for 30 per cent of the total pharmaceuticals market by 2011.

The release added that Simalaya has a strong presence, marketing 58 SKUs with 62 per cent of its products falling in the chronic ailments segment and 38 per cent in the acute ailments segment. Eighteen of the molecules marketed by Simalaya fall in cardiovascular, anti-infective, respiratory, CNS, gastrointestinal and women's healthcare segments, which are also the focus areas for the Zydus group.

Speaking on the acquisition, Zydus Cadila Chairman and Managing Director Pankaj Patel said, "In keeping with our strategy to grow our global business aggressively, we have been looking at key strategic acquisitions, which add value to our operations. South Africa has been one of our key focus markets and Simalaya's expertise and promising growth will unlock value for us as we look to consolidate and grow our business in this market rapidly."

Over the next few years, the group plans to launch over 50 products in the market. A strong product pipeline for South Africa is already in place with 49 filings, of which 21 have been apporved for marketing.