The Adcock strategic prescription
It started as a modest pharmacy in Krugersdorp in 1891 but has grown into a huge listed business. Where to next for Adcock?
Adcock Ingram arguably suffers from investor concerns about its size and market perception. Aspen Pharmacare, as the larger and more internationally recognised player, has greater liquidity in its shares and is seen as more of an institutional stock, which naturally commands a slight premium. In addition, Aspen’s strategic repositioning towards complex manufacturing and away from commoditised products — though it is still a work in progress — is perceived as positioning the company for better long-term profitability, even if the current execution has been uneven.
Of course, of the two, Adcock boasts the far longer history. Founded in 1891 as a modest pharmacy in Krugersdorp, it grew steadily into one of South Africa’s leading pharmaceutical players, producing branded and generic medicines, over-the-counter products and hospital and critical-care solutions for the private and public sectors...
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