Litha Healthcare Group Limited today announced the signing of an agreement with leading Dutch health and wellness company, OTC Pharma International, for the sale of its South African Subsidiary, OTC Pharma South Africa (Pty) Limited. The agreement will see the healthcare group increasing its portfolio in the natural health market.

Johannesburg, South Africa – 15th December 2011

Litha Healthcare Group CEO Selwyn Kahanovitz commented on the acquisition saying, “This agreement sees Litha Pharma significantly increasing its natural healthcare portfolio and we are very excited to build on the brand presence which OTC Pharma South Africa has created within this market.  Litha Pharma will also greatly benefit from OTC South Africa’s and OTC Pharma International’s in-depth knowledge and expertise, as well as their prominent industry profile.”

OTC Pharma South Africa is renowned for its market leading product range which targets consumers and healthcare professionals and won the prestigious Dis-Chem Supplier of the Year Award in 2010 and 2011.

The OTC Pharma South Africa portfolio includes trusted and well known brands such as Marcus Rohrer Spirulina; Similasan; Diabecinn; Picksan; Rescue; Spatone; Cetralin, Rock Hard Weekend; Bye Wart and Bye Mouth Ulcer.

Kahanovitz adds, “Litha Pharma will also further benefit from OTC’s established sales, warehousing and distribution infrastructure, their extensive knowledge of the health and wellness market, their agility and speed to market with R & D innovation, as well as their access to leading research in natural medicines from numerous global suppliers.”

The Group plans to maximise the synergies of the two businesses’ as part of its long term strategy to create a significant presence within the private and public health sector in South Africa, with growth potential for export of products and expertise into Africa.

The agreement, effective from 15th December 2011, will see OTC Pharma South Africa being integrated into Litha’s Pharma Division and will assist the group in attaining one of its strategic objectives, of being one of South Africa’s leading listed, empowered healthcare companies.

Commenting on the announcement, Mario Oldani, CEO of OTC Pharma International says, “I believe the acquisition of the SA subsidiary by Litha Healthcare Group Limited is well timed. OTC Pharma South Africa is enjoying huge growth. However, we came to a cross roads where we needed to assess the way forward to reach the next level for our brands in South Africa in order to align with our international growth strategy.”

“Litha Pharma’s infrastructure on all levels of management, procurement, regulatory and pharmaceutical Good Manufacturing Practice (GMP) standards will assist in ensuring the brands compliance with proposed new legislation for the Complimentary and Alternate Medicines  (CAMs) nutraceutical market.  We see OTC Pharma South Africa growing exponentially through the injection of BEE driven management expertise, the financial resources to support both traditional pharmacy and healthcare distribution into wider FMCG and Doctor Detailing initiatives, and the growth and expansion of OTC Pharma South Africa locally and into the Sub-Saharan African marketplace.”

Commenting on the acquisition, Kevin Coyne, MD of OTC Pharma South Africa said:

”Litha Pharma’s  resources  coupled with OTC Pharma South Africa’s reputable product basket, overall company and brand ethos, agility and flexibility will provide a good platform for realizing the full potential of OTC Pharma South Africa’s diverse brand portfolio. I believe this change will prove to be an important milestone in OTC Pharma South Africa’s history.”

The agreement will also assist the Group in achieving a key objective, of bridging the gap between traditional health shops and pharmacy chains to mass market and dispensing doctors, by maximising OTC Pharma South Africa’s footprint within these markets.

Litha Group would like to further advise that today’s announcement is in no way related to the cautionary statement issued by the Group on the 14th of December.

About OTC Pharma International

OTC Pharma International is based in the Netherlands and has been operating for the last 20 years.

It is also involved in the production, storage, distribution and marketing of cosmetics, self-care products, medicines, nutritional supplements and natural healthcare products. Main brand names include: NIFRI Sunbed, NIFRI Sun, Perskindol, EpiAnal, Additiva, Marcus Rohrer Spirulina, Diabecinn, NOVO MSM, NOVO Motion, NOVO Slank and Similasan Homeopathie.

OTC Pharma International operates in the Netherlands; Belgium, Luxembourg, Germany, Austria, Switzerland, France, Spain, Portugal, Slovakia, Slovenia, Bulgaria, Serbia, Hungary, Czech R, Italy, Greece, Cyprus, Finland, Norway, Sweden, Denmark, United kingdom, Ireland, Togo, Nigeria, South Africa, Canada, Hong Kong, South Korea.

Further company information is available at www.otcpharma.co.za