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Cipla to sell its 100% stake in SA agri and vet businesses

Global pharmaceutical company, Cipla, agreed to divest its 100% stake in Cipla Agrimed, South Africa and Cipla Vet, South Africa for a total consideration of R375m with potential revision linked to FY2017 performance to group companies of Ascendis Health Limited, South Africa.
Cipla to sell its 100% stake in SA agri and vet businesses

Cipla Agrimed operates in the farm animals segment, with sales mainly attributable to agricultural co-operatives and bulk farm purchasing organisations, while Cipla Vet operates in the companion animal segment with sales primarily to wholesalers. Cipla Vet has a strong presence in the South African market, with leading positions in proton pump inhibitors, non-steroidal anti-inflammatory drugs (NSAIDs) and supplements.

Commenting on the development Paul Miller, CEO, Cipla South Africa said, “Cipla has taken the strategic decision to divest and sell its veterinary division. In line with this new strategy, the company will increase its focus and efforts to care for life, for all South Africans.

By doing this, Cipla will have a more intensive approach to grow our portfolio of quality and affordable products, with an aim to provide an even broader range of pharmaceutical solutions in more therapeutic areas in the South African healthcare sector.”

The deal is subject to customary closing conditions, and is expected to close in the next three months.

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