Cipla acquires majority stake in Sri Lankan drug distributor for $14M

Indian pharma major Cipla Ltd has acquired 60 per cent stake in a Sri Lanka-based company for $14 million which would market its products in the country, it announced in the stock exchange on Tuesday. The name of the target company was not disclosed.

According to the announcement, the company entered this transaction through its wholly owned subsidiary – Cipla (Mauritius) Limited.

As part of its strategy to enhance scale of manufacturing and products, the company has been looking at various strategies of acquisitions and investments.

Last year the company acquired its distribution partner in South Africa - Cipla Medpro South Africa - Ltd for around $512 million. This was company’s first acquisition in three years. In 2010, the company acquired stake in Meditab Specialities Pvt Ltd, Mab Pharm and a drug formulation facility in Sikkim.

Apart from acquisition of other players, Cipla has also investing in various companies through its investment arm Cipla New Ventures.

(Edited by Joby Puthuparampil Johnson)

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