Ghana pharma firms merge into single giant

Ghana pharma firms merge into single giant

Gloved hands sorting pharmaceuticals

Three Ghanaian pharmaceutical firms have merged into a single business with the ambition of expanding into the rest of West Africa and beyond. Tom Minney reports

Three Ghanaian pharmaceutical firms merged to become the largest local pharmaceutical manufacturing company, with a portfolio of over 80 products. The new entity, Dannex Ayrton Starwin Plc (DAS Pharma), listed on the Ghana Stock Exchange on 15 January.

Two pharma firms, Ayrton and Starwin, have been delisted as part of the merger. Daniel Apeagyei Kissi, CEO at DAS Pharma, said merger synergies would improve operating efficiency, optimise costs and improve its offering to customers and consumers. 

The company will be able to grow volumes and profitability, achieving its growth ambitions: “We will invest in the business to strengthen our footing in Ghana and expand into the rest of West Africa and beyond.” 

The merged business has a distribution network across Ghana with some 600 staff and over 2,000 active wholesale and retail customers.

Nik Amarteifio, Chairman of DAS Pharma, said the companies had to merge because of the changing business landscape, in order to survive. They hoped for synergies from merging administration, procurement and production and anticipated the company would increase technical capabilities.

He added that the combined market capitalisation would be enough to attract potential investors and discussions are advanced with investors, including a sovereign and health-oriented funds.

Ekow Afedzie, Managing Director of the GSE, said it was the first time that two listed local companies had merged with a non-listed entity to list on the GSE. The market capitalisation of the company was GHC33m.

He urged local companies seeking to expand their operations to look to the GSE to raise capital.

According to local reports, the merger started six years ago when local pharmaceutical company Dannex acquired majority shares in Starwin Products Limited, through a rights issue where Dannex became the biggest shareholder of the company with 185.3 million shares (71%). 

Related Posts

  • James Mworia of Centum

    Centum Investment’s Midas touch

    Centum, East Africa’s largest publicly listed investment firm, seems to have the Midas touch – turning everything it comes into contact with into gold. James Mworia, the company’s CEO, tells Tom Collins why the Kenya’s consumer-oriented policy is such a boon for investors

  • Fishermen in Gazi Bay

    Africa must not be shortchanged on climate finance

    Climate finance, properly directed, not only mitigates the effects of global climate change, but also plays a significant part in economic and social development. However, the richer nations are still not paying their fair share of the climate bill

  • Moody's Senior Vice President Constantinos Kypreos

    Moody’s dim outlook on African banks

    Constantinos Kypreos, who leads a team of analysts covering banks in Africa, the Middle East and the Balkans, talks to Rafiq Raji about the reasons why the rating agency has downgraded its outlook for African banks

  • Mahin Dissanayake, Senior Director, Banks – EMEA, at Fitch Ratings

    Kenya brightens Fitch outlook

    Fitch Ratings has downgraded its outlook on African banks. Rafiq Raji talks to Mahin Dissanayake, Senior Director, Banks – EMEA, at Fitch to discover why 

Join our 70,000+ subscribers by signing up to our mailing list

Help us deliver better content