Endo International announced on 5 August the strategic divestiture of a portfolio of device, vaccine and other non-core products from Litha Healthcare Group, its subsidiary in South Africa, to a consortium comprised of Westrate and Immunotek.
The transaction is expected to be completed in the fourth quarter of 2015 subject to regulatory consents and is not expected to have a material impact on Endo’s financial results this year. This divestiture continues the transformation of Litha and strengthens its strategic focus on pharmaceutical products.
Local expansion plans
In May 2015, Endo announced the acquisition of a broad portfolio of 60 on-market products and nearly 70 R&D pipeline programmes, which will be incorporated into Litha from a subsidiary of Aspen. The Aspen transaction, which is projected to close in the third quarter 2015, is expected to meaningfully expand Endo’s pharmaceutical presence in South Africa and to be immediately accretive to earnings.
Making an impact in South Africa
‘The latest transaction further reinforces our commitment to grow and streamline our international business to align with Endo’s focus on becoming a leading global specialty pharmaceutical business,’ says Rajiv De Silva, President and CEO of Endo. ‘We continue to make important progress in building Litha, including the recent addition of an experienced and proven general manager. This divestiture is the result of our strategic portfolio review and designed to focus efforts and resources on targeted growth priorities where Endo can make the most difference for patients. We are very proud of the contributions Litha has made in the establishment of the first vaccine manufacturing plant on the African continent. We wish Westrate and Immunotek much success in continuing this very important endeavour in coordination with the South African government.’
Westrate and Immunotek were formed by experienced healthcare executives Selwyn Kahanovitz, Martin Kahanovitz and Morena Makhoana, the founders of Litha. The divesture underscores Litha Healthcare’s continued commitment to help transform South Africa’s public health system, particularly in the area of paediatric vaccines, and to support the development of local industrialists and entrepreneurs.