Paladin Labs Inc. has acquired an initial 35 per cent stake in South African-based Pharmaplan (Pty) Ltd. for an undisclosed amount.
Montreal-based Paladin said Tuesday the deal — which commits the company to increase its ownership position in Pharmaplan over time based on the South African company's financial performance — is part of a strategy to expand internationally.
The value of the South African pharmaceutical market is estimated to be C$3 billion, and Pharmaplan's sales topped $32.9 million in 2009, Paladin said.
"Pharmaplan is a first-class business that is virtually identical to Paladin but in a complementary geographic region. Its commercial capabilities are proven, its business results are impressive and we are pleased to finally have the opportunity to leverage our mutual strengths for combined advantage," stated Jonathan Ross Goodman, president and chief executive of Paladin.
"Given the ability to now leverage Paladin's commercial insights, business development network and greater resources, our business will be even stronger and our ability to service existing and future partners will be greatly enhanced," added Pharmaplan CEO Gert Hoogland.
Hoogland will continue to manage the Pharmaplan business with strategic input from Goodman and Mark Nawacki, Paladin's vice-president of business and corporate development, the company said.