Ranbaxy buys SA pharmaceutical firm for $70mln

New Delhi, May 8 (UNI) Pharma major Ranbaxy Laboratories has acquired South Africa'a Be-Tabs Pharmaceuticals (Pty) Ltd for 70 million dollars, making it the fifth largest generic pharmaceutical company in the country.

The deal will give Ranbaxy local manufacturing capability and would help double its earnings.

''The acquisition of Be-Tabs will ensure that Ranbaxy develops deeper roots in South Africa and with a strong local flavour,'' company's global pharmaceutical division president Peter Burema said.

Ranbaxy South Africa Chief Executive Oficer Desmond Brothers said, ''The company will further invest around R100 million in the local economy to provide quality medicine at an affordable price to the South African market.'' Be-Tabs will remain an independent trading entity and will form one of the three companies within the Ranbaxy SA group - the other two being Sonke Pharmaceuticals and Ranbaxy (South Africa), company said in a statement.

As part of the acquisition, Ranbaxy has concluded a Black Empowerment transaction with a Community Investment Holding (CIH) group company.

It is also planning a major upgrade of the Be-Tabs manufacturing facility to bring its factories in line with new standards, Mr Brothers said adding that in future, some of Ranbaxy's clinical trials will also be performed in South Africa.

UNI