JB Chemicals eyes stake in African co
JB Chemicals & Pharmaceuticals is going to tap the $3-billion South African pharma market, the largest in the African continent, by acquiring a significant stake in SA-based Biotech Laboratories. JB is going to invest $5.1 million in Biotech to acquire a minority stake with an option to increase it further in future.
Pranabh Mody, president, JB Chemicals told ET that after Russia and the CIS countries, its next focus will be the African continent. “Biotech will be the vehicle through which we will tap South Africa initially and then other countries in the continent,” says Mr Mody. Initially JB will take a stake of under 49% and later it will raise it to 51%.
Mr Mody says that instead of tapping the US or European generic markets like many other Indian pharma companies, they have decided to focus on Africa instead. “Currently, about 45% of JB’s revenues come from Russia and CIS countries, 42% from India, 7% from APIs and the rest from other countries,” says Mr Mody. Biotech currently is a $ 9-million company. JB Chemicals has already got its “Doktor Mom” range of OTC products registered in South Africa.
Apart from Biotech’s existing generic products, JB will also introduce its OTC products and other ethical products. We have also filed 3-4 ANDAs for anti-fungus and anti-biotic drugs. Biotech is amongst the fast growing generic pharmaceutical companies in South Africa. It owns a significant number of product dossiers.
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