On 16 March Lupin announced it entered into an agreement to acquire the balance 40 per cent equity stake in South African generics major, Pharma Dynamics from its founders. As per the agreement, the founders will exercise their put option before end March. On completion of this transaction, Pharma Dynamics will become a wholly owned subsidiary of Lupin, subject to closing conditions.
Talking about the development, Pharma Dynamics CEO Paul Anley comments: ‘Lupin has been an extremely strong partner in our business since 2008 and we have always had an excellent relationship. The fact that Lupin has increased its shareholding in Pharma Dynamics is a huge compliment and augers very well for our continued success.’
The acquisition represents significant foreign investment into SA and is a major vote of confidence in the business. It will add additional global muscle to Pharma Dynamics’ operations and support the next phase of growth for the company. Lupin CEO Vinita Gupta says: ‘We are delighted with this development as Africa is fast emerging as one of the growth engines of the future. We deeply appreciate the efforts of Anley in building Pharma Dynamics into a very robust and the fastest growth pharma major in the South Africa, and are pleased he agreed to continue as CEO.’
Headquartered in Cape Town, Pharma Dynamics was founded in the year 2001 and distributes a range of branded, generic prescription medicines and over-the-counter (OTC) products in South Africa as well as other key markets across the African continent. In September 2008 it set out on a shared mission with Lupin to provide effective and affordable healthcare products to patients in South Africa and the African continent. During this time Lupin acquired a strategic 60 per cent equity stake the company.
Currently Pharma Dynamics is among the fastest growing top 20 pharmaceutical companies in the country and the third largest generic company within the prescriptions market. It is the biggest supplier of cardiovascular pharmaceuticals in South Africa by both value and volumes. Its products also address therapies such as central nervous system, gastrointestinal, diabetes, and gynaecological and male health segments. In 2013, it entered the local anti-infective market, supplying IV antibiotics to hospitals. Its OTC products portfolio includes antihistamines, cold and flu medication, and heartburn treatment.
Pharma Dynamics’s basket of products includes SA market leaders like Amloc® (top selling Anti-hypertensive), Fedaloc® (its top selling Nifedipine), Bilocor® (Bisoprolol), Texa® Allergy (Cetirizine), and Lancap® (Lansoprazole).