| Log in

Cipla buying two plants owned by promoter’s private firm Okasa for $17M

05 September, 2014

Medispray Laboratories Private Limited, a wholly owned subsidiary of Mumbai-based drugmaker Cipla Ltd, is acquiring two manufacturing units of private firms associated with Hamieds, the promoter of Cipla, for Rs 101 crore ($16.7 million) as per a company statement.

A significant portion of the capacities of the two undertakings is already dedicated for the manufacture of Cipla’s products. The first manufacturing facility is located in Goa and is owned by Okasa Private Limited whereas the second manufacturing facility is located at Satara (Maharashtra) and is owned by Okasa Pharma Pvt Ltd.

Both privately held firms are owned by people associated with Hamieds.

The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore, respectively.

Okasa manufactures and distributes more than 800 pharmaceutical products in core therapeutic categories, including medicinal aerosols and devices, oncology products, antiretrovirals, cardiovascular drugs, anti-infectives, antifungals, antiallergics, dermatologicals, drugs for pain management and psychotherapeutics.

The valuation of the two transactions was supported by reports from Price Waterhouse & Co. LLP and fairness opinions provided by Kotak Mahindra Capital Company Limited, the company said.

Generic drugmaker Cipla has been aggressively growing its footprint internationally through acquisitions to increase its market share. Last month the company announced its plans to acquire 51 per cent stake in a UAE-based pharma company. Earlier the company acquired 60 per cent stake in a Sri Lankan company for $14 million.

Cipla restarted its inorganic expansion phase last year when it acquired its distribution partner in South Africa—Cipla Medpro South Africa Ltd—for $512 million. This was the company’s first acquisition in three years. In 2010, it acquired stake in Meditab Specialities Pvt Ltd, a stake in Mabpharm and a drug formulation facility in Sikkim.

Earlier this year Cipla announced that Meditab Specialities Private Limited (MSPL), a wholly owned subsidiary of the company, had acquired the remaining 75 per cent stake in biotech firm Mabpharm Private Limited (Mabpharm) for an undisclosed amount.

(Edited by Joby Puthuparampil Johnson)


Leave Your Comment
Cipla signs pact to invest $37M for manufacturing unit in Iran with 75% stake

Cipla signs pact to invest $37M for manufacturing unit in Iran with 75% stake

Anuradha Verma 3 years ago
Mumbai-based drug maker Cipla Limited has inked a definitive agreement with its...
Cipla picking 60% stake in respiratory devices co Jay Precision Pharma for over $15M

Cipla picking 60% stake in respiratory devices co Jay Precision Pharma for over $15M

Jasleen Kaur Batra 3 years ago
Cipla Limited has signed a definitive agreement to acquire 60 per cent stake of...
Cipla to acquire South Africa’s Cipla Medpro for $512M

Cipla to acquire South Africa’s Cipla Medpro for $512M

Bhawna Gupta 5 years ago
No Comments

Cipla buying two plants owned by promoter’s private firm Okasa for $17M

Powered by WordPress.com VIP