India’s Natco Pharma has secured a significant foothold in the South African pharmaceutical market by acquiring a 35.75% stake in Adcock Ingram, valued at approximately R4.2 billion (₹2,000 crore).
This strategic move will transform the 135-year-old company into a privately held entity, co-owned by Natco and Bidvest, which will retain its position as the majority shareholder.
The acquisition was approved by over 98% of Adcock Ingram’s shareholders at a general meeting held on October 9, 2025.
The deal involves Natco Pharma South Africa purchasing all ordinary shares not already held by Natco, Bidvest, or Adcock Ingram’s treasury shares.
Following the completion of the transaction, Adcock Ingram will be delisted from the Johannesburg Securities Exchange (JSE), marking a significant shift in its corporate structure.
Natco’s offer, made in July 2025, was priced at R75 per share (approximately $4.27), which led to a 20% increase in Adcock Ingram’s share price at the time.
The transaction is expected to be finalized within four months, subject to regulatory approvals. Once completed, Natco will consolidate 35.75% of Adcock Ingram’s net profits in its financial results, aligning with its shareholding.
This acquisition enables Natco Pharma to expand its presence in the Southern African market, particularly in the generics and consumer healthcare sectors.
Adcock Ingram, with a revenue of R9.6 billion (approximately $536 million) for the fiscal year ending June 2024, operates a portfolio of well-established brands and has a strong distribution network across South Africa and other emerging markets.
The partnership with Bidvest, which has been involved with Adcock Ingram since 2019, is expected to enhance the company’s competitiveness and facilitate access to new markets.
Adcock Ingram’s General Manager, Dorette Neethling, highlighted that the collaboration with Natco Pharma would provide the company with the support of strong, globally recognized stakeholders, enabling it to explore new markets and expand its product offerings.
For Natco Pharma, this acquisition represents a significant step in its international expansion strategy, leveraging its research and development capabilities, regulatory expertise, and global marketing reach to strengthen its position in the global pharmaceutical industry.
The company’s CEO & Vice Chairman, Rajeev Nannapaneni, expressed confidence that the partnership would lead to wider access to affordable medicines in South Africa and other regions.
Last week, Natco Pharma won a legal battle in India that allowed it to sell a generic version of a key pharmaceutical drug, strengthening its domestic portfolio and enhancing its capacity to supply affordable medication.
The case, decided in Natco’s favor, demonstrated the company’s ability to navigate complex intellectual property and regulatory challenges, further boosting its credibility in global markets.
The deal has been structured to ensure business continuity, with no immediate changes to existing operations, partnerships, or supplier relationships.
Both companies are committed to maintaining uninterrupted business operations during the transition period.
As the transaction progresses, stakeholders are closely monitoring its impact on the pharmaceutical landscape in Southern Africa and the broader implications for Natco Pharma’s global strategy.
The successful completion of this acquisition is anticipated to enhance Natco’s competitive edge and contribute to the growth of the pharmaceutical sector in the region.