Cipla to set up manufacturing plant in Iran
The move is expected to boost its presence in a market worth US$ 4 billion.
Mumbai, October 7, 2014: The Indian drug firm Cipla has announced setting up of a plant in Iran as a part of its strategy to increase its presence in a market worth US$ 4 billion. The pharmaceutical market in Iran is growing at a rate of 13 per cent annually.
Cipla will own 75 per cent stake in the plant while the remaining will be held by its local distributor. The Indian company will invest Rs 2.25 billion over three years on the facility. The company said in a statement that Cipla has been providing medicines to patients in Iran for several years and believes that Iranian patients cannot be denied to medicines due to sanctions.
The company also added that "We have observed a high prevalence of respiratory disorders and cancer cases in Iran. There were also patients suffering with diseases like thalassemia, HIV/AIDS and heart diseases, who have been at a risk due to the impact of sanctions."
It is expected that the setting up of the plant will help in faster registrations of new products and will improve the competitive position of the company.