Cipla Enters Chinese Market
Cipla (EU) Limited ("Cipla EU"), U.K., a wholly owned subsidiary of Cipla limited ("Company"), has entered into a joint venture agreement with Jiangsu Acebright Pharmaceutical Co., Ltd. ("Acebright"), China on 15th July 2019 for the incorporation of a company (JV Co.) in China.
The JV Co. will be in the business of manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services with the purpose of providing high quality and affordable drugs.
As per the agreement, Cipla EU will hold 80% stake and Acebright will hold 20% stake in the JV Co. Cipla EU's investment in the JV Co. is estimated up to USD 24 million over a period of 4 years.
The JV Co. will become a related party upon incorporation and first tranche of investment; and any investments in JV Co. will be a related party transaction. None of the persons belonging to Promoter I Promoter Group of the Company has any interest in the transaction. The transaction remains subject to conditions precedent and requisite regulatory approvals.