Mumbai-based drug maker Cipla Limited has agreed to sell its entire stake in China-based pharmaceutical company Jiangsu Cdymax Pharmaceuticals for $18.5 million, as per a stock market disclosure.
The Indian drug major held 48.22 per cent stake in Jiangsu Cdymax through its Mauritius-based wholly-owned arm Meditab Holdings Ltd, which has inked a definitive agreement to sell its entire stake to an affiliate of one of the other shareholders of the Chinese firm.
The closing of the transaction is subject to receipt of regulatory approvals in China.
Talking to PTI, a Cipla spokesperson said, “Cipla had 48.22 per cent stake in Cdymax with an objective to pursue formulation opportunities in China. However, as per the new global growth strategy, Cipla did not see a strategic fit in these transactions and hence decided to divest the stake at a value of $18.5 million which was the initial value of our investment in the entity."
Cipla's Meditab Specialities Private Limited recently acquired the remaining 75 per cent stake in biotech firm Mabpharm Private Limited for an undisclosed amount.
Generic drugmaker Cipla has been aggressively growing its footprint internationally through acquisitions to increase its market share.
In June, the company announced its plans to acquire 51 per cent stake in a UAE-based pharma company. Earlier it acquired 60 per cent stake in a Sri Lankan company for $14 million.
(Edited by Joby Puthuparampil Johnson)