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Speaking after the group released interim results to end-March, Adcock CEO Jonathan Louw said while the group remains focused on organic growth in the local market, its acquisition plans were north of South Africa where opportunities are abundant.
Adcock, which produces flu remedy Corenza C and painkillers Panado among other products, already has operations in Kenya and recently entered Ghana, after acquiring Ayrton Drug Manufacturing (Ayrton).
"We're looking into countries adjacent to Ghana," said Louw.
"We believe the potential is huge in West African markets... We're also leveraging on the multinational partnerships we have in SA into Kenya."
Those multinational partnerships include the distribution of branded pharmaceutical products.
Louw reported the Ayrton acquisition has been well received by markets in that country, and said the group was encouraged that it now has the platform from which to grow in West Africa.
He said the Ayrton business was expected to deliver up to R120m in revenue at the end of its first financial year as part of Adcock.
Louw admitted that while there was still space for organic growth in SA, there were fewer opportunities for acquisitions, especially after the failed bid to acquire Cipla-Medpro.
Adcock, which on Tuesday reported an 11% growth in headline earnings per share to 226.5 cents per share and revenue growth of 7% at R2bn, also said it expected to benefit from growing demand for Aids drugs from the public sector.
It said it looks forward to the next antiretroviral (ARV) tender in the coming months as the group remains committed to supporting government in its ARV rollout.
It said it will offer a range of new-generation ARV molecules and a combination ARVs before the next SA government tender. On Tuesday afternoon, Adcock shares were trading at 5 292c, 2.14% lower than the last close of 5 510c.
- Fin24.com
