Adcock acquires Pharma-Q rights

A sign outside the Adcock Ingram offices in Johannesburg.

Picture: Reuters

The deal strengthens the offerings of the two companies, expanding their basket of products including the licensing of all Pharma-Q products to AICC, and marketing and distribution.

Anthony Lesch, CEO of Pharma-Q, said the offering was much broader now, and more new products were entering SA because of the pipeline. "We will be able to bring products to the market much faster, causing a competitive environment."

Consumers would see a continuance of prices as set by the government’s single exit price, Lesch said.

This partnership would benefit both parties, he said.

AICC MD Colin Sheen said Pharma-Q, one of SA’s few licensed sterile manufacturers, had "a product range that complements our portfolio and commercial skills".

Funds generated through the agreement would let Pharma-Q invest in upgrades at its plant, said Vicki St Quintin, corporate affairs manager at Adcock Ingram. Pharma-Q would also have access to AICC’s comprehensive distribution network, she said.

Through the deal, Pharma-Q hoped that it would receive more investments from the Department of Trade and Industry and the Industrial Development Corporation.

The move would also see AICC expanding its business. They would "keep the transition smooth and try not to affect customers", said St Quintin.

"AICC is bringing across the Pharma-Q sales team who are familiar with the Pharma-Q products and have the customer relationships and insight."

Pharma-Q previously conducted its own in-house marketing of its products, but due to expansion, it has been forced to bring in the expertise of an experienced company.

Lesch said they had been in business with each other since Pharma-Q bought the plant from Adcock in which they now operate. The Adcock Ingram Critical Care factory in Aeroton, Johannesburg, is Africa’s only integrated medical-grade plastics and pharmaceutical manufacturing facility.

Pharma-Q is one of only three licensed sterile manufacturers and the only dental cartridge manufacturer in SA. Pharma-Q is the only South African pharmaceutical manufacturer registered in Dubai.