As per the agreement, the JV will become a subsidiary of Cipla. Cipla's wholly-owned subsidiary Cipla EU will hold 80 percent stake and Acebright will retain the balance for a combined investment of $30 million
Cipla shares gained 1.4 percent intraday on July 16 after company entered into an agreement with Shanghai-based Jiangsu Acebright Pharmaceuticals to set-up a joint venture company in the People’s Republic of China.
The joint venture company will manufacture respiratory products in China.
As per the agreement, the JV will become a subsidiary of Cipla. Cipla's wholly-owned subsidiary Cipla EU will hold 80 percent stake and Acebright will retain the balance for a combined investment of $30 million.
“While our core home markets remain our current growth anchors, we see China as a crucial part of our future roadmap," said Umang Vohra, MD and CEO of Cipla.
Cipla said it will simultaneously explore various routes to build a portfolio of products in other therapeutic segments such as oncology in China.
Cipla’s entry into China’s branded respiratory segment is in line with its pursuit to build a global respiratory franchise. The segment alone contributed about one-fifth to Cipla’s sales of Rs 16,362 crore in FY19.
The respiratory segment includes range of products including pills, nasal sprays and inhalers to treat asthma, Chronic Obstructive Pulmonary Disease (COPD) and Allergic Rhinitis (AR), among others.The stock was quoting at Rs 556.40, up Rs 5.65, or 1.03 percent on the BSE at 1028 hours IST.The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .