Natco Pharma's Bold Stake Acquisition in Adcock Ingram: A Strategic Move into African Markets

Natco Pharma, the Hyderabad-based pharmaceutical company, announced its intent to acquire a 35.75% stake in Adcock Ingram Holdings, a leading South African drug firm, for up to Rs 2,100 crore. The acquisition, if successful, will provide Natco with an established entry into the Southern African market.

The proposal represents a cash offer at R75 per share, translating to a valuation of R4 billion for the stake. Natco currently holds 0.80% in Adcock Ingram. This strategic move is seen as a way for Natco to diversify its revenue streams and increase its presence in one of Africa's largest and fastest-growing markets.

Natco Pharma's CEO and Vice Chairman, Rajeev Nannapaneni, stated this acquisition marks a significant milestone. Adcock Ingram's CEO, Andrew Hall, expressed that the partnership with Natco is a vote of confidence in their brand and offers long-term benefits by providing broader access to affordable medicines in South Africa.

(With inputs from agencies.)