Mumbai-based drugmaker Cipla Ltd has agreed to divest its entire 25 per cent equity stake in Hong Kong-based biosmilar drug company Biomab Holding Ltd (BHL) to its JV partner Biomab Brilliant Ltd for $25.7 million (about Rs 168 crore), according to a stock market disclosure.
Following the completion of the stake sale, BHL will be completely owned by Biomab Brilliant. The deal is, however, subject to conditions precedent and receipt of applicable regulatory and other approvals.
Biomab Holding is focused on developing biosimilars for the Chinese market.
The move to sell stake in BHL is part of Indian drugmaker's efforts to focus on biological segment under its arm Cipla BioTec.
It said that Cipla BioTec will focus on research, development, manufacturing and marketing of Biosimilars, in the field of cancer, auto—immune diseases, respiratory diseases and diabetes.
“Through Cipla BioTec, we will focus on global product development with the aim of making biological therapies accessible and affordable to patients in need,” Cipla New Ventures' head Chandru Chawla said in the statement.
Last month, the pharmaceutical firm had inked a big deal to acquire two US-based companies—InvaGen Pharmaceuticals Inc and Exelan Pharmaceuticals Inc—for around $550 million (Rs 3,650 crore) in cash.
The deal, one of the biggest overseas buys by an Indian drugmaker, has been routed through its UK arm Cipla EU that has signed definitive agreements with the two companies for the acquisitions, subject to certain closing conditions.