Cipla South Africa to acquire Actor Pharma

Aiming to expand its healthcare footprint in South Africa, Cipla South Africa, a subsidiary of Cipla Limited, has signed an agreement to acquire Actor Pharma, a rapidly growing player in the South African over-the-counter (OTC) market.

The company said this is a strategic acquisition for Cipla South Africa to unlock the future growth opportunities and leverage cost synergies in the South African market.

“This (acquisition) 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,” said Umang Vohra, Global MD and CEO of Cipla Limited.

Actor Pharma, established in 2009, has swiftly risen to become the fifth-largest privately-owned OTC player in South Africa. Specialising in OTC and generic medicines, Actor Pharma has built strong consumer brands and identified niche markets in categories such as women’s health, nasal, cough and cold, and baby and child.

“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,” Paul Miller, CEO of Cipla South Africa, said.

With an innovative pipeline and robust financial performance, Actor Pharma recorded revenue of R234 million (approximately Rs 121.49 crore) in FY23, driven by strong double-digit growth.

“With the focussed approach of their commercial team, we are excited to see Actor grow from strength to strength in future,” Lynton Lomas, a shareholder of Actor Pharma said.

The transaction is anticipated to conclude within the next three to four months, pending the negotiation and signing of definitive transaction agreements, along with regulatory approval from South Africa's Competition Commission.

This strategic acquisition is expected to bring about significant growth opportunities and cost synergies for Cipla South Africa, further solidifying its presence in the South African healthcare market, Cipla said in a statement.