Cipla has agreed to sell its South African animal health business to Ascendis Health in a deal thought to have a total value of around $30 million (375 million rand). The deal is subject to approval by the competition commission and pending this, is expected to be completed within three months.
“Cipla has taken the strategic decision to divest and sell its veterinary division. In line with this new strategy, Cipla will have a more intensive approach to grow our portfolio of quality and affordable products with an aim to provide an even broader range of pharmaceutical solutions in more therapeutic areas in the South African healthcare sector.” said Paul Miller, chief executive officer, Cipla South Africa.
Cipla Agrimed operates in the farm animals segment, with sales mainly attributable to farm co-operatives and bulk farm purchasing organizations, while Cipla Vet in South Africa operates in the companion animal segment, with sales primarily to wholesalers.
The company has been working to rationalize its markets and portfolio, and exit non-core, low-profit businesses. As part of this strategy, it plans to sell its consolidated animal health business, under Cipla Vet, which supplies products to over 100 countries.
Ascendis Health Limited is a South Africa based health and care brands company operating in human, plant and animal health. “We have full confidence in Ascendis Health’s ability to take both veterinary units to new heights.” Paul Miller added.
Cipla Vet operates in the companion animal segment with sales primarily to wholesalers. Cipla Vet has a strong presence in the South African market, with leading positions in Proton Pump Inhibitors, Non-steroidal Anti-inflammatory Drugs (NSAIDs) and supplements.