Largest insulin distributor in Jamaica posts gain on acquisition

Acado Limited posted a US$8 million gain on the acquisition of the Jamaica operations of Massy Distribution Limited, a deal that gave it near-total control of the local insulin market, subject to a regulatory divestment order.

“The group has delivered a strong performance in the first half of the financial year,” stated the preface to the results signed by Goddard Chair John Williams and Managing Director Anthony Ali. “Acado being the second-highest contributor to the group’s bottom line.”

Acado is the 50-50 joint venture between Barbados-based Goddard Enterprises Limited and Trinidad and Tobago-based Agostini. The company was formerly called Caribbean Distribution Partners Limited.

The gain arose because Acado paid less than the fair value of the assets it acquired. “With a purchase price below the fair value of net assets acquired, a one-time gain of Bd$16.1 million (US$8.0 million) was recorded,” the financial notes stated. Goddard booked Bd$8 million (US$4 million) as its share. The financials did not explicitly disclose the total purchase price.

The acquisition expanded Acado’s consumer and pharmaceutical lines, adding two insulin brands — Novo Nordisk and Sanofi — which the Fair Trading Commission (FTC) indicated held some 19 per cent of the market. Acado previously distributed the Eli Lilly insulin line, which held some 81 per cent of the market, according to the FTC’s initial staff report, which contained redacted data that became visible once pasted as text.

Massy Holdings, which completed the sale of its Jamaican distribution operations in March, booked a loss on disposal of TT$105.3 million (US$15.5 million) in its March quarter results, alongside TT$40.22 million in total profit from its Jamaican operations before the handover.

The FTC issued a non-objection to the deal subject to conditions, the principal one being the divestment of the Eli Lilly brand to a third-party distributor by September 2026. The commission found that without the divestment, the transaction would hand a single company control of nearly all insulin dispensed to the 250,000 persons affected in Jamaica. “The merger would effectively change the insulin market from a duopoly to a monopoly,” the FTC staff report stated. “It would substantially lessen competition” for a life-saving drug, the report added.

In Jamaica, Goddard’s automotive division launched the GAC brand — manufactured by China’s Guangzhou Automobile Group — during the first quarter, through Fidelity Motors Limited, operating in a regional partnership with Motorworld Caribbean. The Kingston dealership offers internal combustion, hybrid and fully electric models. The division recorded top-line growth on the back of GAC sales, though Hurricane Melissa and rising finance costs weighed on net income.

“An increase in finance costs to secure inventory during the period resulted in a reduction in net income for the division,” Goddard said.

Goddard group revenues slipped 2.3 per cent to Bd$895.24 million (US$447.5 million), which it blamed on a fall in cocoa prices affecting sales at its Ecuador-based processing facility.

steven.jackson@gleanerjm.com