SOUTH AFRICA – Amethis, an Africa-focussed investment fund manager has acquired a minority stake in Avacare, a key regional distributor and manufacturer of both pharmaceuticals and healthcare consumable products across South Africa.
The fund manager focused on the African continent will support Avacare in its project to strengthen its pharmaceutical products.
Avacare is a pan-African distributor and manufacturer operating across several African countries among them Namibia, South Africa, Lesotho, Botswana, eSwatini, Zimbabwe, Zambia, and Kenya.
Avacare, which has been in existence for 25 years, is also thinking of expanding its presence in new markets, particularly in East Africa and in French-speaking countries.
Avacare sells more than 9,000 products and has more than 1300 employees achieving a turnover of US$200 million in the 2021 financial year, with a network spanning 32 warehousing facilities, 15 manufacturing facilities, and 47 sales offices across Africa.
Avacare also plans to promote research development and manufacturing across the regions it operates.
The goal is to bridge the healthcare divide across the African continent by a transfer of cutting-edge technology in the fields of messenger RNA, biologicals, bioequivalent, biosimilars, and the development of healthcare technology aimed at broadening access to quality healthcare.
“Welcoming Amethis as a partner is a new chapter in Avacare’s adventure. We look forward to working together to expand and strengthen our presence on the African continent, as well as to expand our product line in existing and new markets”
Vikramkumar Naik – Founder, Avacare
The company has also expanded its product range to fast-growing markets such as South Africa, Canada, Australia, and the United States.
Amethis will support Avacare in its shift towards manufacturing as it continues to consolidate its position towards existing and new markets and this should also help the groups upgrade their governance and reinforce management.
Welcoming Amethis as a partner is a new chapter in Avacare’s adventure. We look forward to working together to expand and strengthen our presence on the African continent, as well as to expand our product line in existing and new markets,” said Anesthesiologist, Vikramkumar Naik, who founded Avacare in 1996.
Partner at Amethis Khady Koné-Dicoh who led the investment said, “Avacare which plays a decisive role in providing access to affordable and innovative treatments in Africa.”
This minority stake comes a few months after two recent investments by Amethis (in the first quarter of 2021), first in Senegal, in the consumer goods sector and then in a micro-irrigation company in Morocco.
Avacare hopes to profit from the growth of the pharmaceutical market in Africa.
The continent still imports nearly 80% of its pharmaceuticals and medical consumables.
In 2019, it weighed 0.7% of the global pharmaceutical market.
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