Cipla agrees to buy South African pharma maker for INR 225 cr

Cipla, one of India’s largest pharmaceuticals makers, said it has agreed to buy South African pharmaceuticals maker Mirren for 450 mln rand, or about INR 225 cr.

Mirren is a fast-growing OTC specialist with 152 mln rand of turnover in the last financial year, 123 mln in the preceding year and 83 mln in the year before. The company, which has been in operations for 35 years, has several well-established brands such as Bronco! cough syrup, Coryx , Tensopyn, and Ultimag, according to Cipla.

Paul Miller, CEO of Cipla South Africa , said that once approved, the transaction will enhance Cipla’s current OTC portfolio , by adding Mirren’s brands. The company also has its own manufacturing operations.

“The acquisition by Cipla will help to ensure that, the continued growth that the Mirren brands have achieved over the past three years will be sustained,” said Lynton Lomas, director of Mirren.

He added that the ‘well being of Mirren’s dedicated staff’ was one of the biggest deciding factors in deciding the sale.

Cipla already has its operations in South Africa via Cipla Medpro, which is the fourth largest private sector pharmaceutical company in the country. The transaction is subject to the approval by the Competition Commission of South Africa .