Industry Trend Analysis - Acino Acquisition Will Be A Fresh Start For Litha - MAY 2017
BMI View: Endo International's divestment of Litha Healthcare highlights that Endo was not able to increase its presence in emerging markets in comparison to its blossoming US Generics segment. The new relationship between Litha an Acino will be a fresh start for both. Historically, Acino has had little presence outside of Europe, but has long stated that entering certain emerging markets is a strategic aim. Litha, representing a well- established p resence in South Africa, a well- established African pharmaceutical market, will provide Acino with a key component to its expansionist outlook.
Acino has signed an agreement with Endo International to acquire Litha Healthcare in South Africa. Headquartered in Midrand, Johannesburg, Litha is a pharmaceutical company with around 160 employees that provides to both public and private hospitals, pharmacies, general and specialist practitioners and government law enforcement programmes. The deal is expected to close in Q217.
Acino commented that the acquisition was in line with its strategy to grow its business by entering high potential markets in the Middle East and Africa, adding that the acquisition of Litha will give it immediate access and a strong presence in South Africa. This is key for the company to become a significant player in the pharmaceutical landscape in Africa. Acino stated that it had chosen Litha as the company has a strong position in the market and a solid reputation in several therapeutic areas that are strategic for Acino. With a well-established product pipeline and long-standing relationships with licensing partners, Litha offers Acino promising prospects for the future.
|International Pharmaceuticals The Poor Relation Of Endo's Segments|
|Endo's Quarterly Segment Results (USD000s)|
|Source: Endo International, BMI|