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Drug suspension hits Adcock profit

Johannesburg - SA's second-biggest drug maker Adcock Ingram Holdings [JSE:AIP] reported a flat half-year profit as acquisitions and new distribution partnership were offset by the suspension of key drugs at home.

Adcock, the country's biggest maker of over-the-counter drugs, said on Tuesday diluted headline earnings totalled 221c in the six months to end-March, compared with 225.9c a year earlier.

Headline EPS is the primary profit gauge in South African that strips out certain one-off items.

Adcock finalised the acquisition Ghana's Ayrton during the period and teamed up with US firm Merck & Co to co-promote drugs in southern Africa.

But the company also suffered after South African health authorities ordered it to suspend the sale of three drugs, including the painkiller Synap Forte, due to safety concerns. The three pain-killers contributed about R200m to annual sales.

Adcock said sales rose 14% to R2.2bn.

The company said it would expand further into fast-growing Africa through the extension co-promotion partnerships in global pharmaceutical companies.

Shares of Adcock are little changed so far this year, roughly in line with the All Share [JSE:J203] index.

Mulling Nigeria acquisitions

Adcock is considering acquisitions in Nigeria, according to materials made available at an investor presentation on Tuesday.

The company also said it is working on two new co-promotion partnerships with global pharmaceutical firms.


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