Drug major Cipla said on Monday said its unit has inked a pact to acquire South Africa-based Actor Pharma. Cipla South Africa, a wholly-owned subsidiary of the Mumbai-based pharma major, has inked into a binding term sheet with Actor Holdings (Pty) Ltd to acquire 100 percent of the issued ordinary shares of Actor Pharma, the drug major said in a regulatory filing.

This development underpins Cipla's commitment and investment in its over-the-counter (OTC) business and supports its journey to becoming a leading healthcare player in South Africa, he added.

The pharmaceutical major said this is a strategic acquisition for Cipla South Africa to unlock future growth opportunities and leverage cost synergies in the South African market.

However, the company did not disclose the financial details of the deal.

Actor was founded in 2009 and has quickly grown to become the fifth-largest privately owned OTC company in the South African market.

Actor specializes in OTC and generic medicine, where they have established strong consumer brands and defined specialty prescription drug markets in women's health, nasal, cough & cold, and, baby and child.

"This is in line with our strategy to strengthen our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities, and improve the performance of our portfolio," said Cipla Ltd and Global CEO. CEO Umang Vohra said.

“This is a unique opportunity that helps build out Cipla’s OTC portfolio, providing the business with a more balanced revenue contribution between its prescription and OTC business and continuing to provide additional high-quality medicines to consumers,” said Paul Miller, CEO of Cipla South Africa.

Cipla said the deal is expected to close within the next three to four months, subject to the negotiation and signing of final transaction agreements, as well as obtaining regulatory approval from the South African Competition Commission.

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