South African pharmaceutical stalwart Adcock Ingram is poised to exit the Johannesburg Stock Exchange on 11 November 2025, following the fulfilment of all conditions in its acquisition by Indian firm Natco Pharma SE. The scheme of arrangement, which secures Natco’s purchase of minority shares at R75 per share, became unconditional on Friday, paving the way for Adcock to transition into a privately held entity jointly owned by Natco and majority stakeholder Bidvest. As reported by Business Day, the overwhelming shareholder approval in October underscores the deal’s appeal, positioning Adcock for enhanced growth through Natco’s global expertise in generics and oncology.
The transaction, valued at approximately R4.2 billion, represents a 44% premium over Adcock’s closing price on 18 July 2025 and targets the 35.75% stake not already held by Natco or Bidvest, excluding treasury shares. At a general meeting on 9 October, 98.66% of voted shares endorsed the offer, reflecting confidence in the strategic partnership. Bidvest will maintain its 64.25% controlling interest post-delisting, allowing Adcock—listed on the JSE since 2008—to leverage Natco’s research-driven capabilities while preserving its South African roots. According to Moneyweb, the independent board deemed the terms fair and reasonable, citing potential synergies in product development and market access.
Natco Pharma, established in 1981 and headquartered in Hyderabad, India, is a vertically integrated player specialising in finished dosage formulations, active pharmaceutical ingredients, and oncology generics. Listed on the Bombay and National Stock Exchanges, the company operates in over 50 countries, including the US, Europe, Canada, Latin America, Southeast Asia, the Middle East, and North Africa. Its portfolio spans cardiology, neurology, and diabetology, bolstered by a strong emphasis on affordable specialty medicines, as outlined in Natco Pharma’s 2025 annual report. The acquisition marks Natco’s strategic entry into Africa’s burgeoning pharmaceutical market, valued at R100 billion annually, where demand for generics is projected to grow 12% through 2030 amid rising chronic disease prevalence, per IQVIA’s Africa Pharma Outlook.
In collaboration with Bidvest, Natco aims to harness Adcock’s established infrastructure and regional distribution networks, which command a 10% share of South Africa’s private pharmaceutical sector and lead in hospital and critical-care supplies. Adcock’s household brands, such as Panado, Corenza-C, Compral, Allergex, and Citro-Soda, generate robust demand in over-the-counter (OTC) and consumer healthcare segments. The partnership is expected to accelerate access to innovative therapies, including Natco’s oncology pipeline, which contributed 60% to its FY2025 revenues of ₹4,500 crore, according to The Economic Times. This cross-continental tie-up exemplifies the increasing India-Africa pharma collaborations, which have mobilised $5 billion in investments since 2020, as noted in Business Standard.
Adcock’s financial performance provides a stable foundation for the merger. For the year ended 30 June 2025, revenue edged up 1% to R9.76 billion, supported by a 30% surge in second-half trading profit driven by strong sales of the “winter basket” essentials, effective informal sector outreach, and normalised wholesaler orders. Operating profit and headline earnings remained stable, with net income rising 5.5% to R858.5 million and headline earnings per share at 625.6 cents. The board declared a final dividend of 165 cents per share, reflecting confidence amid a net cash position of R104 million. As detailed in Adcock Ingram’s audited financial statements, these results highlight resilience in a market facing inflationary pressures and regulatory shifts, with the OTC division—accounting for 40% of sales—outperforming through cost controls and a 5.25% single exit price increase in February 2025.
The delisting aligns with a wave of JSE exits, reducing listed entities by 15% since 2023 as firms seek agility in private structures. For Adcock, it enables focused investments in R&D and exports, which already reach 20 African and Asian markets. Challenges include navigating South Africa’s healthcare reforms, such as the National Health Insurance rollout, which could reshape generics pricing. Yet, the Natco alliance promises enhanced competitiveness, with combined R&D resources potentially yielding new affordable treatments for oncology and chronic conditions prevalent in the region.
As the deal closes, Adcock Ingram’s evolution from a JSE mainstay to a private powerhouse signals optimism for its next chapter, blending local market leadership with global innovation to broaden access to essential medicines across Africa.