Ranbaxy emerges as the 5th largest pharma company in S Africa

Mumbai, May 8 (UNI) Pharma major, Ranbaxy Laboratories today said they have secured approval from South Africa's Competition Commission for their acquisition of Be-Tabs Pharmaceuticals, a move that catapults the company to the position of the fifth largest generic pharmaceutical company in South Africa.

As part of this acquisition, valued at Rs 500 million (USD 70 million), the company has concluded a Black Empowerment transaction with a Community Investment Holding (CIH) group.

President of Ranbaxy's global pharmaceutical division, Mr Peter Burema said ''the acquisition of Be-Tabs will ensure that Ranbaxy develops deeper roots in SA and with a strong local flavour.'' A key element of the Be-Tabs deal is that it gives the company local manufacturing capability, making it one of the few generics pharmaceutical companies to invest in and develop local manufacturing functionality. The company is also planning a major upgrade of the Be-Tabs manufacturing facility to bring its factories in line with new standards. With the re-vamp of the Be-Tabs facilities, the company expects to lead the way for generics manufacturing in South Africa, he disclosed.

The acquisition of Be-Tabs substantially strengthens the basket of products that the Company brings to the market, especially in the acute and over the counter product streams. The Company expects to use the brand equity that Be-Tabs has acquired to leverage market share among wholesalers, pharmacies, dispensing doctors and consumers, Mr Burema explained.

It is worth recalling here that Ranbaxy had established a presence in South Africa in the year 1996 and has been rewarded with excellent growth in the past decade. The acquisition of Be-Tabs is expected to boost earnings by more than double, industry observers said.

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 (SA), Ranbaxy clarified.

UNI