Adcock Ingram expands in Indian pharma market buying Cosme Farma brands

South Africa’s largest health care company Adcock Ingram (AIP: SJ) says it has reached an agreement to purchase certain assets of Indian pharmaceutical firm Cosme Farma Laboratories, for 708 million rupees ($11.9 million) in cash. The acquisition, through its Indian subsidiary Adcock Ingram Healthcare, will expand the company’s access to the high-growth $16 billion Indian pharmaceutical market.

“In line with our growth strategy, we have identified India as a key growth market in which to position ourselves for the sustainability and diversification of the business, and this transaction sees us take a step towards realizing that strategy”, said Adcock Ingram’s deputy chief executive and financial director Andy Hall. “This is a large domestic market with an emerging middle class which will be a major driver of economic growth in the country and we are looking to tap into that growth and extend our reach into the Indian market,” he added.

Cosme Farma is a pan Indian branded sales and marketing pharmaceutical business which is based in Goa and Mumbai, India. It has been in operation for over 40 years. The company has a sales force of about 900 that provide nationwide coverage to around 150,000 physicians. Cosme Farma has distribution capabilities in 27 states in India. It has a portfolio of products in several therapeutic classes, key being gynecology, gastro-intestinal and dermatology.