Cipla to buy Brazil's Duomed Produtos Farmaceuticos for Rs2.6 cr

Indian pharmaceutical company Cipla has stepped up its overseas acquisitions by striking a deal to buy Brazilian firm Duomed Produtos Farmaceuticos for about Rs2.6 crore.

"Cipla (EU) Ltd, UK, a wholly-owned subsidiary of Cipla, has entered into a definitive agreement for acquisition of 100 per cent stake in Duomed Produtos Farmaceuticos Ltd, for a cash consideration of Brazilian Real (R$) 1,293,600 (about Rs2.6 crore)," Cipla said in a filing to the Bombay Stock Exchange (BSE).

The transaction is expected to be completed by the end of next month, subject to certain conditions.

"The deal has the approval of Brazilian health authority (ANVISA) and other regulatory authorities to import and distribute pharmaceutical products in Brazil", the filing said.

Founded in 1935 by Dr. Khwaja Abdul Hamied as 'The Chemical, Industrial & Pharmaceutical Laboratories, Cipla is India's 42nd largest publicly traded company by market value.

The Mumbai-based company focuses on treatment to treat cardiovascular disease, arthritis, diabetes, weight control, depression, and other medical conditions.

Last year it acquired a 14.6-per cent stake in Chase Pharmaceuticals Corporation Inc of the US, for $1.5 million, and a 51 per cent stake in a pharmaceuticals manufacturing and distribution business in Yemen for Rs125 crore as part of its effort to emerge as a global supplier of cheap medicines.

As part of its global expansion, Cipla had completed the buyout of South African pharma firm Cipla Medpro for Rs2,707 crore in 2013 and acquired Croatia-based firm Celeris, a distributor of its products in the country.