Lupin to raise stake in SA co to 100%

NEW DELHI: Drug major Lupin has inked a pact to acquire an additional 40% stake in South Africa’s Pharma Dynamics, taking its holding in the company to 100%.

Lupin had acquired 60% per cent stake in the firm in September 2008.

As per the agreement, the founders of Pharma Dynamics will exercise their put option before March 31, 2015, for the 40% equity stake they currently hold in the company, Lupin Ltd said in a statement.

On completion of this transaction, Pharma Dynamics will become a wholly-owned subsidiary of Lupin, subject to closing conditions, it added.

The company, however, did not disclose financial details of the transaction.

“The fact that Lupin has increased its shareholding in Pharma Dynamics is a huge compliment and augers very well for our continued success,” Pharma Dynamics CEO Paul Anley said in the statement.

Commenting on the deal, Lupin CEO Vinita Gupta said the drug firm is delighted with the development as Africa is fast emerging as one of the growth engines of future.

“We are pleased that Paul Anley has agreed to continue as the CEO,” she added.

Cape Town-based Pharma Dynamics, founded in 2001, distributes a range of branded, generic prescription medicines and over-the-counter products in South Africa as well as other key markets across the African continent.