New Pharma Deal: Cipla Inks Pact With Yemeni Firm
New Pharma Deal: Cipla Inks Pact With Yemeni Firm
Along with its overseas acquisitions, pharma major Cipla has formed a pact with a Yemen based firm to acquire a stake of $21 million or over Rs. 125 crore from it. A definitive agreement has been signed to get around 51% stake in the pharmaceuticals, manufacturing and distribution business at Yemen.
A statement issued by Cipla has indicated the company will pay $21 million for this transaction and additional considerations will be paid over 3 years of attainment of the milestones.
The recent preference for local manufacturing has secured Cipla's presence in a rapidly growing market. Cipla is currently a market leader in Yemen with around 200 products. Based on its global expansion, Cipla has completed the purchase of South African pharma firm Cipla Medpro for 2707 crore rupees last year.
Cipla also acquired a Croatia-based company called Celeris which is the distributor of its products in this country. Following the acquisition, Cipla traded at Rs.439.20 which is up by 1.90 points which is about 0.43% up from a previous closing of Rs. 437.30 on the BSE.
The scrip opened at Rs. 442.00 and it has touched a high and low of about Rs. 443.55 and Rs.439.00. About 96,629 shares have been traded on the counter this time. The BSE group A stock of face value of around Rs. 2 reached a 52 week high of around Rs. 450.00 in the month of September in the year 2013. It also touched a 52 week low of Rs.366.70 in the last week of February in the year 2014.
The last one week high and low of the scrip stood at Rs.442.40 and Rs.418.50 respectively. Current market cap of the company is valued at Rs. 35111.75 crore. Promoters in the company were at 36.80% while institutions and non-institutions were at 34.75% and 27.35% respectively.
The company will pay around $21 million for this transaction which is subject to completion of certain conditional precedents. Cipla is a global pharma company using cutting edge technology and innovations to meet daily needs of patients. For nearly 70 years, Cipla has emerged as one of the most best known pharma names in India. It has also acquired a stellar reputation abroad.
The company is taking steps to expand further owing to the rapid growth of the market. This latest definitive agreement with a Yemeni firm will come as a good move for providing quality medicines at cheap rates.
With rapid growth in the number of diseases and rising healthcare concerns, it becomes very tough to battle medical emergencies if quality medication is not available. As population levels continue to rise and people are becoming prone to numerous mental and physical health problems, the need for reasonably priced authentic medication is on the rise now.
With new collaborations and partnerships, the pharma sector can improve its services and products to meet growing needs of consumers and healthcare organisation.
