Ranbaxy to invest $14 m in SA unit
Company got Johannesburg’s nod for Be-Tabs buyout last week.
By TNN |
NEW DELHI: Ranbaxy Laboratories will invest around $14 million to upgrade the manufacturing facility of Johannesburg-based pharma company Be-Tabs. With the regulatory approval last week, Ranbaxy concluded the acquisition of Be-Tabs Pharmaceuticals for $70 million.
As part of this acquisition, Ranbaxy has also concluded a black empowerment transaction with a Community Investment Holding (CIH) group company. Ranbaxy is believed to have sold 25% stake of Be-Tabs to CIH for $17 million. Ranbaxy announced that it would acquire Be-Tabs in December last year but received South Africa’s Competition Commission’s approval only last week.
In an official statement, Ranbaxy’s global pharmaceutical division, president Peter Burema said, “The acquisition of Be-Tabs will ensure that Ranbaxy develops deeper roots in SA and with a strong local flavour.”
The acquisition will make Ranbaxy the fifth largest generic pharmaceutical company in SA and among the few generic pharma companies in SA to have a manufacturing capability, the statement added.
Says Ranbaxy South Africa CEO Desmond Brothers: “The company’s decision to manufacture locally will not only help to provide quality medicine at an affordable price to the Southern African market, but will also mean a further investment of approximately R100 million ($14 million) in the local economy.”
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Be-Tabs will remain an independent trading entity and will be the third company after Sonke Pharmaceuticals and Ranbaxy SA, within the Ranbaxy SA Group, the statement added. Ranbaxy is also planning for a major upgradation of Be-Tabs’ manufacturing facility to new standards and lead the way for generics manufacturing in South Africa. The acquisition of Be-Tabs, the largest manufacturer of penicillin in South Africa, will strengthen the product portfolio of Ranbaxy in SA, especially in the acute and over-the-counter product streams. The company expects to leverage the brand equity of Be-Tabs among wholesalers, pharmacies, dispensing doctors and consumers.
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