Prospects and Plans

The Litha group was created to provide a unique basket of products to customers and to offer a diverse range of products and services, with cross-selling opportunities driven across the group.

During the last financial year, synergies in each division at various levels of the healthcare value chain in both private and public sectors were identified. As the product range and therapeutic areas increase in each of the three divisions, further opportunities will develop and the interaction will become more meaningful.

Examples of possible cross-selling opportunities include optimizing the strength of the Medical division in the private hospital space to benefit the Pharma division once it is in a position to launch niche pharma products to the private hospital space. Furthermore, as the group’s pharmacy team grows, benefits will develop for the Biotech division’s private market which sells vaccines to private clinics in independent and corporate pharmacies. The relationship at a senior level in public and private sector purchasing will also be shared between the three divisions.

Looking ahead, the main focus areas for the group and divisions are as follows:

Litha Healthcare Group Limited

  • Full integration of the business units into the group
  • Extract the benefits of shared services and logistics across the broader group
  • Drive cost reduction and cut duplication in the enlarged group
  • Broaden the group’s geographic footprint to provide integrated healthcare solutions in Africa
  • Greater alignment of the division’s operations to the group’s strategy

Litha Biotech Division

Through The Biovac Institute, Litha Biotech aims to:

  • Initiate manufacturing of at least one vaccine by 2013
  • Submit application to the World Health Organisation (WHO) for pre-qualification by 2015
  • Complete on technology transfer agreement with a multinational group by 2013
  • Initiate a technology transfer programme for an additional vaccine by 2015

Litha Medical Division:

  • Expand sales in the public sector
  • Broaden product and agency mix
  • Acquire or develop profitable assembly and packaging facility
  • Bedding down of new agencies
  • Increase exports to sub-saharan Africa and Indian Ocean Islands
  • Consolidating warehousing and logistics in the long term
  • Rationalisation of costs through integration of shared services

Litha Pharma Division:

  • Become the second largest division within the Litha Group
  • Conclude appropriate acquisitions, joint ventures, distributorships and or partnerships to create scale and growth
  • Expand product offering to obtain critical mass in generics medicine market
  • Consolidate niched Pharma prescription business 
  • Expand on opportunities for in-licensing and distribution agreements
  • Establish a sustainable medium to long term product pipeline
  • Integrate Pharmafrica and Goldex acquisitions
  • Continue to source and generate generic product registrations for the Southern African market

“We remain a group which is entrepreneurial by nature. We will position ourselves to pursue further product innovation opportunities as they arise. We have strong resources in place to focus on both value-adding acquisitions, as well as bedding down the current group structure to derive benefits from the scale we have created within the group” – Andrew Bonamour, Chairman Litha Healthcare Group Limited.