Adcock Ingram pleads case for CFR bid; delivers strong revenue growth

South African drugmaker Adcock Ingram (AIP): SP) yesterday made the case for accepting a takeover from Chile largest pharma company CFR Pharmaceuticals’ 12.6 billion rand ($1.25 billion) takeover offer, which has been held back by Adcock largest shareholder, the state-owned Public Investment Corporation, which owns 19% of its stock, and which said it would not support the deal (The Pharma Letter November 8).

The company stressed that the combination with CFR, which will target high-growth emerging markets, makes strategic sense for Adcock Ingram and South Africa. The proposal from CFR to acquire control of the company would result in Adcock becoming part of a leading, diversified, emerging markets pharmaceuticals company with a presence in more than 23 countries and employing more than 10,000 people. The combined company would benefit Adcock with access to high-growth markets for certain products in its OTC and ARV portfolio, and expanded manufacturing opportunities.

South Africa would remain core to the proposed merged company with Adcock’s factories playing a key role in the combined group. The planned increase in production in South Africa would require additional investment and increased employment in the factories, and lead to increased exports from South Africa, the company stated.

FY 2012/13 turnover rises 18%