Cipla South Africa to acquire Actor Pharma

Cipla South Africa, a division of Cipla Limited, has agreed to buy Actor Pharma, a prominent player in the South African over-the-counter (OTC) market, in order to increase its presence in the country's healthcare sector. According to the business, Cipla South Africa made this strategic acquisition to capitalise on cost synergies and unlock future growth opportunities in the South African market.

"This (the acquisition) is consistent with our plan to bolster our OTC and wellness portfolio. Umang Vohra, Global MD and CEO of Cipla Limited, said, "We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities, and optimise the performance of our pipeline. Actor Pharma, which was founded in 2009, has quickly risen to become South Africa's fifth-largest privately-owned OTC player. Actor Pharma, a company that specialises in OTC and generic medications, has created strong consumer brands and recognised niche markets in areas like women's health, nasal, cough and cold, and baby and child.

According to Paul Miller, CEO of Cipla South Africa, "this is a special 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 continuing to provide additional high-quality medicines for consumers." Actor Pharma recorded revenue of R234 million (roughly Rs 121.49 crore) in FY23, driven by strong double-digit growth, and demonstrated a strong financial performance.

“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.