Cadila Healthcare to buy stake in S Africa's Simayla

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Mumbai, Jun 9 (UNI) Indian drugmaker Cadila Healthcare Limited has acquired 70 per cent stake in South Africa's Simayla Pharmaceuticals, marking the Indian firm's second buy in less than a fortnight.

The acquisition will be effected through its unit, Zydus Healthcare Sa Limited, a release issued by Cadila said.

The African firm recorded revenue of 18.6 million South African Rand in 2007 and is expected to grow to 40.5 million Rand in 2008.

The remaining 30 per cent stake in Simayla will be held by its founder Ben Classen, who will continue to head the operations.

''South Africa has been one of our key focus markets and Simayla's expertise and promising growth will unlock value for us as we look to consolidate and grow our business in this market rapidly,'' Cadila's Managing Director Pankaj Patel said.

The combination plans to launch 50 drugs over the next three years in South Africa, where the drug market is expected to touch USD 4.62 billion by 2011, Cadila said in the release.

These drugs are to be produced at Cadila's manufacturing unit in Ahmedabad, the release added.

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