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In its year-end 2015 financial report, Adcock expressed concerns over the underperformance of Cosme.
"As time has evolved, management has recognized the difficulties of operating an enterprise in such a competitive pharmaceutical market (India), which, in relative terms is sub scale, requiring inter alia, and significant further investment.
"In 2014 financial year, given the losses incurred, after the obligatory internal intangible asset amortization, the Cosme Pharma investment was impaired by an amount of R278 million," Adcock revealed.
The trading loss of R56.8 million, incurred in the current financial year, dictated that a further impairment of R74.4 million would be appropriate, it said.
The Group's Cosme Pharma was acquired in early 2013 for Rs 480 crore.