Mumbai, June 9 (PTI): Pharmaceutical firm Zydus Cadila said it would acquire 70 per cent stake in South Africa-based generic firm Simayla Pharmaceuticals for an undisclosed amount.

“South Africa has been one of our key focus markets and Simayla’s expertise and promising growth will unlock value for us as we look to consolidate and grow our business in this market rapidly,” Zydus Cadila chairman and managing director Pankaj R. Patel said.

The remaining 30 per cent stake will be held by the promoter of Simayla Pharmaceuticals, Ben Classen

Classen will also continue to head the firm’s operations, Zydus Cadila said in a filing to the Bombay Stock Exchange.

The acquisition was carried out through its wholly owned subsidiary Zydus Healthcare SA Ltd and would open up opportunities for the group in a market that is estimated to touch $4.62 billion over the next three years.

The generic sector is expected to grow at a compounded annual growth rate of 19 per cent to touch $1.29 billion and is likely to account for 30 per cent of the total drug market by 2011.

Over the next three years the group plans to launch 50 products in the market. The products, which were approved by the Medicines Control Council, the regulatory authority of South Africa, would be manufactured at Moraiya in Ahmedabad.

Besides South Africa, Simayla will market the products in Namibia, Angola, Botswana, Swaziland and Mozambique.