Cipla Forms Mfg JVs in Algeria, MoroccoBy
Cipla (EU) Limited, UK, a wholly owned subsidiary of Cipla Ltd., has entered into a joint venture (JV) agreement with company’s existing business partners in Morocco, Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI). The initial focus of the JV will be respiratory and neurology products and will also include setting up a manufacturing facility in Morocco.
As per the agreement, Cipla (EU) Limited will hold 60% stake in the JV, and Cooper Pharma and PHI will together hold 40%. Cipla (EU) Limited’s expected investment in cash in the JV is estimated at up to $15 million. The transaction is subject to closing and applicable regulatory approvals.
In other news, Cipla Ltd has agreed to establish a JV in Algeria with its an existing partner, Biopharm SPA. The JV company will manufacture and market respiratory products.As per the term sheet, the Cipla’s wholly owned subsidiary, Cipla (EU) Limited, will hold a 40% stake in the JV company while the remainder will be held by a Biopharm-led Algerian consortium. The JV company is expected to make an investment of up to $15 million for the construction of a manufacturing facility. Cipla (EU) Limited's initial investment in cash in the JV company is expected to be $6 million. The transaction is subject to execution of definitive agreement and applicable approvals.
Cipla also has agreed to acquire a 60% stake of Jay Precision Pharmaceuticals Private Limited, based in Mumbai, for a cash consideration of Rs. 96 crore. Jay Precision is an existing supplier of respiratory devices to the company and has a manufacturing facility at Vasai, Maharashtra, India. The transaction is expected to be completed by end of this financial year, subject to completion of certain conditions.
Source: Cipla/Bombay Stock Exchange (BSE) (Morocco), Cipla/BSE (Algeria), and Cipla/BSE (Jay Precision Pharmaceuticals),