Adcock Ingram Goliath and Goliath
And in pharmaceutical news of truly gargantuan proportions, Adcock Ingram might just be bought out by CFR Pharmaceuticals, a Chilean-based company that is currently making a bid to acquire 100% of the SA company at a value of R12.9biljoens. And who are they, you ask? No small-fry drug development and distribution company, let us tell you. Founded in 1922, CFR now sells products in 23 countries, with 14 manufacturing facilities in Chile, Argentina, Colombia, Peru, Canada, the UK and Vietnam. What’s more, 70% of its shares reside in family hands, although it was listed on the Santiago Stock Exchange in 2011 to raise capital to grow in Latin America, Asia, Europe and Africa, and of course Mars (well, not really, but who’s to stop them?). According to both parties, the deal would be a perfect fit, since both Adcock and CFR specialise in branded and generic medicines. The combined company would earn revenues of around R12.1billion (37% of which is generated by Adcock), enjoy a presence in 23 countries and employ over 10,000 people.
Comment: Now there’s a pharmaceutical giant in the making, if ever there was one.