“We did do this big deal with Pharmaplan in the middle of last year which was game changing, it really expanded our pharma business. If you look at our six-monthly results – middle of last year was 86 million for pharma and now its 286 million,” Selwyn Kahanovitz, the CEO Litha Healthcare, told CNBC Africa on Wednesday.
“Our pharma business and vaccines are regulated. That’s the business we know, we come from that industry, we understand the regulations, we’re pharmacists.”
[DATA LHG:Litha Healthcare] reported that second quarter earnings before interest, taxes, depreciation, and amortization were up 12 per cent.
It also reported a 386 per cent increase in second quarter earnings per share while operating profit also increased by 77 per cent for the same period.
The diversified healthcare company has three main divisions: Litha Biotech, Litha Medical and Litha Pharma, which in itself, accounted for the biggest portion of the revenue.
“It’s 55 per cent pharma and that’s only really come through now since the Pharmaplan acquisition, so we’re really pleased with our pharma being 55 per cent of the revenue. Our medical is 30 per cent and our vaccine’s 15 per cent,” Kahanovitz explained.
Litha Healthcare acquired Pharmaplan as part of a transaction with Paladin Labs of Canada in 2012. It has given the division the scale it needs to position itself for growth and Kahanovitz insists that the company can be seen as a growth stock going forward.
“We really have moved quite a bit on the pharma side, we are looking organically in all of our divisions especially medical and the pharma, and acquisitively as well.”