Cipla buys 60% stake in Sri Lankan co in marketing push

Indian pharmaceutical major Cipla Ltd has acquired a 60-per cent stake in a new company in Sri Lanka for $14 million (nearly Rs85 crore) to market its products in the country.

The acquisition has been made through Cipla (Mauritius) Ltd, a wholly-owned subsidiary of Cipla Ltd, according to a filing with the Bombay Stock Exchange (BSE).

Cipla (Mauritius) has signed a definitive agreement with its existing Sri Lankan distributor for acquiring the 60-per cent stake in the new company.

Cipla, which has been active in acquisitions as part of its global expansion, said the new company will market its products in Sri Lanka.

''The consideration payable for the transaction is $14 million,'' the filing said, adding that the proposed acquisition was subject to regulatory approvals.

Last year, Cipla completed the buyout of South African pharma firm Cipla Medpro for Rs2,707 crore (See: Cipla amends offer, offers $512 mn for whole of Cipla Medpro South Africa).

Last December Cipla had also acquired Croatian firm Celeris, which distributes its products in that country.

The Cipla scrip was trading at Rs412, down 0.37 per cent on the BSE at 3 pm.