Natco Pharma's Strategic Move: Acquiring Stake in South Africa's Adcock Ingram

India's Natco Pharma is poised to acquire a substantial stake in Adcock Ingram, a leading South African pharmaceutical company with a legacy spanning 135 years. This significant R 4.2-billion transaction, sanctioned by more than 98% of Adcock Ingram's shareholders, signals a major transformation for the South African firm as it transitions into a privately-held entity co-owned by Natco and Bidvest.

The arrangement will see Adcock Ingram delist from the Johannesburg Securities Exchange (JSE), allowing the company to navigate beyond its current regulatory constraints. This transition has already sparked a 20% rise in Adcock Ingram's stock value following Natco's acquisition proposal in July.

Adcock Ingram's General Manager, Dorette Neethling, emphasized the benefit of having strong, globally-supported stakeholders that will enable the company to explore new markets, notably expanding into the consumer segment and generics market. With this partnership, Natco is also set to deepen its footprint within the Southern African market, enhancing revenue streams and providing wider access to affordable medicines across the continent.

(With inputs from agencies.)