Chilean generic drug producer CFR Pharmaceuticals has embarked on a South African road show starting June 08. CFR Pharmaceuticals will be seeking investor backing for its plans to purchase Adcock Ingram, South Africa's second-biggest pharmaceutical company.
CFR Pharmaceuticals' CEO, Alejandro Weinstein, says he has been looking to expand in emerging markets, especially those where the company has been active for the past few decades.
The two companies, Adcock Ingram and CFR Pharmaceuticals stated they were in talks over a possible acquisition by CFR Pharmaceuticals. A cash and shares deal is said to value Adcock Ingram at R12.9bn (US$1.3 billion).
CFR Pharmaceuticals' plans to purchase Adcock Ingram follow last year's acquisition of Colombian pharmaceutical firm Lafrancol for $562m, its biggest transaction since it became listed on the Santiago Stock Exchange in 2011.
The acquisition of Adcock Ingram would likely make the South African market CFR Pharmaceuticals' most important, if the deal goes through. The South African market should account for about 41% of should all go according to plan.
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