| Tue 3 May 2011, 16:32 | | LHG - Litha Healthcare Group Limited - Litha Healthcare Group Limited Acquires |
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LHG
LHG
LHG - Litha Healthcare Group Limited - Litha Healthcare Group Limited Acquires
Goldex Healthcare
LITHA HEALTHCARE GROUP LIMITED
(Formerly Myriad Medical Holding Limited)
Incorporated in the Republic of South Africa
(Registration number 2006/006371/06)
Share code: LHG ISIN:ZAE000144671
("Litha" or "the company")
LITHA HEALTHCARE GROUP LIMITED ACQUIRES GOLDEX HEALTHCARE
The acquisition which forms part of the group`s Pharma Division strategy, will
result in the company rapidly expanding its pharmaceutical pipeline
Litha Healthcare Group, a JSE listed healthcare company, has signed an agreement
to acquire Goldex Healthcare, a Durban-based pharmaceutical company. The cash
deal sees Litha obtaining a 100 % share in the company, for a total value R 33
Million and is being funded through internally generated cash. Goldex is an
approved manufacturer and distributor of its own pharmaceutical products, as
well as an exclusive distributor, under license, for Unichem Laboratories Ltd, a
leading Indian multinational. By acquiring and integrating the Goldex product
range, the Litha Healthcare Group will build scale and secure product pipelines
for its Litha Pharma Division.
The company`s products comprise; prescription and over-the-counter (OTC)
medicines which include amongst others; Cold & Flu Preparations, Mouth & Throat
Preparations, Dermatological Preparations, Ophthalmic Preparations, Ear, Nose &
Throat preparations, Anti-inflammatories / Analgesics, Anti-microbials,
Antihistamines, Cardiovascular Agents and Vitamin supplements.
Goldex Healthcare promotes products such as Sinustat throughout South Africa and
its product line currently holds 32 active pharmaceutical products which include
mainly generic as well as some innovator brands. There are also a number of
products awaiting registration at the Medical Control Council (MCC).
"Realising the need for continuity, Litha and Goldex Healthcare have agreed to
an eight month handover period until December this year, during which time
Goldex will continue to operate from its Durban premises, with the entire
operational staff remaining in place. Thereafter, Litha Group will transfer the
Goldex business to our headquarters in Johannesburg. We anticipate that the
longer handover period will ensure a smooth transition of the Goldex business
into the Litha Group, `` says Selwyn Kahanovitz, Group CEO, Litha Healthcare
Group Limited.
Kahanovitz adds, "Brett Ryan, the Commercial and Sales Manager for Goldex
Healthcare, will continue in his current position and will together with Litha
Pharma, increase the current Goldex sales force, with further investment and
promotion of the Goldex product range."
During the past three years, Goldex has experienced considerable growth and
success in the generic pharmaceutical sector in Southern Africa. Part of this
growth has been due to their strong and valued relationship with Unichem India.
"With the current portfolio of Goldex and Unichem products, together with the
pipeline of products awaiting MCC registration, we are excited about the
positive boost to the size of the overall product range within the Litha Pharma
Division," concludes Kahanovitz.
3 May 2011
Sponsor
Java Capital
Date: 03/05/2011 16:32:01 Produced by the JSE SENS Department.
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