UPDATE 1-Adcock says to save 128 mln rand on tax over 4 yrs

* Qualifies for a 458 mln rand special tax allowance

* To save 128 mln rand over 4 yrs on tax

* To make first tax claim under this special dispensation (Adds details)

JOHANNESBURG, July 3 (Reuters) - South Africa's No.2 drug maker, Adcock Ingram (AIPJ.J), expects to save about 128 million rand ($16.44 million) on tax over four years owing to a special tax allowance, it said on Friday.

Adcock, which sells painkillers such as Panado and flu remedy Corenza Para-C, said in a statement it would qualify for a special tax allowance of 458 million rand, equating to a tax saving, at current tax rates, of 128 million rand over a period of four years.

The company said it has embarked on an approved capital expenditure for its pharmaceuticals division and would make its first claim under the special dispensation for the tax year to end September 2009. (Reporting by Gugulakhe Lourie)