Adcock (AIP) – Limited Opportunities

Post the restructuring of Adcock, management’s strategy has been to expand within the non-regulated space. The company spent ZAR81m on acquisitions in FY17, which collectively contributed ZAR100m (+2%) towards revenue.
Genop Healthcare is the latest acquisition, and although we are pleased with Adcock’s efforts of expanding the non-regulated portfolio, we believe growing the distribution arm through targeting independent pharmacies might prove difficult.