Mumbai-based drug maker Cipla Limited has entered into a joint venture agreement with two of its existing business partners in Morocco – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI), as per a stock market disclosure.
As per the agreement, Cipla, through its UK arm, will hold 60 per cent stake in the joint venture while Cooper Pharma and PHI will together hold the remaining 40 per cent stake.
This joint venture will enable Cipla to establish a front-end presence in Morocco’s pharmaceutical market becoming the launch vehicle for its portfolio while leveraging the commercial strengths of partners.
The focus of the joint venture will be respiratory and neurology products and going ahead it will also invest in setting up a manufacturing facility in Morocco.
Cipla's expected investment in this joint venture is estimated to be approximately $15 million.
Subhanu Saxena, managing director & global CEO, Cipla, said, “Morocco is an attractive pharmaceutical market in the African continent. This JV is aimed to strengthen Cipla’s presence in Morocco, which is in-line with our global growth strategy to build front-end presence in key markets.”
Generic drug-maker Cipla has been aggressively growing its footprint internationally through acquisitions to increase its market share. A few months ago it said it is acquiring 51 per cent stake in a UAE-based pharma company. Earlier the company acquired 60 per cent stake in a Sri Lankan firm for $14 million.
Cipla started this inorganic expansion phase in 2013 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.
(Edited by Joby Puthuparampil Johnson)