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The Investment Case
Adcock Ingram is a leading South African healthcare company and celebrates 120 years of operations in 2010. Today, the Company comprises a comprehensive Pharmaceuticals and Hospital Products business with our head office and distribution centre based in Midrand, Gauteng. Adcock Ingram has a total of five manufacturing sites in South Africa, Ghana and India and we have regional sales and distribution offices in Kenya, Ghana and Zimbabwe.

Adcock Ingram re-listed on the Johannesburg Stock Exchange on the 25th of August 2008. In Pharmaceuticals, Adcock Ingram is the market leader in total volume sold into the private market, value market leader in Over The Counter (OTC) medicines and number two in private market value in prescription. The business markets both branded and generic products across a broad range of therapeutic classes. Prescription brands such as Synap Forte® and Adco-Zolpidem® are market leaders in their respective therapeutic classes, whilst Adcock Ingram has three of the top ten OTC products with our Adco-Dol, Panado® and Corenza C brands.

Adcock Ingram has a strong pipeline of NCE and Generic products across all therapeutic classes and we actively pursue strategic partnerships with international companies to strengthen the branded product portfolio. The Company also has a portfolio of anti-retroviral drugs which have been researched and developed in our World Health Organisation approved Research & Development facility. Adcock Ingram recently acquired a portfolio of complementary vitamin and mineral supplements and personal care products to leverage the OTC product portfolio into adjacent categories in both the Pharmacy and FMCG channels.

Adcock Ingram is ideally placed to take advantage of the growth opportunities in the Sub-Saharan Africa economies. The South African healthcare market benefits from favourable demographic trends, such as Government initiatives to combat HIV/AIDS, sustained growth in the middle class and increased accessibility to healthcare products. Importantly, through our low-cost manufacturing facilities in South Africa and India, Adcock Ingram is able to maintain a cost-efficient manufacturing base. Through acquisition and market development, Adcock Ingram has been able to establish a strong presence in East and West Africa through branded generic and OTC products.

Adcock Ingram's nine senior executive managers have over 90 years of combined industry experience and have been with Adcock Ingram on a combined basis for over 45 years. The unbundling and subsequent re-listing of Adcock Ingram in 2008 presented the Company with opportunities to drive our vision of being recognised as a leading, world-class branded healthcare company. Adcock Ingram continues to pursue organic growth opportunities and acquisitions in selected markets, developing exportable competencies, and implementing meaningful transformation across the business.
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