Cipla to buy 51 percent in Cipla Medpro for US$ 220 million
As a major step towards consolidating its international business, Cipla is buying 51 per cent of Cipla Medpro.
Mumbai, November 22, 2012: In a bid to consolidate its international business, Cipla is buying 51 per cent stake in South Africa’s Cipla Medpro for US$ 220 million. This is Cipla’s first international acquisition in the 75 year old history of the company. The deal has valued the South African company at about US$ 440 million.
It should be noted here that with this acquisition, South Africa will become the second-largest drug market for Cipla. MedPro is South Africa’s third largest biggest pharma major with annual sales of over Rs 1,000 crore.
The South African market is estimated at US$ 4 billion which is growing at about 10 per cent and holds 35 per cent of the African market.
Cipla announced soon after its last quarter financial results that the future of the company will depend on international markets. At the end of the last quarter, the revenue contribution of international markets stood at 56 per cent out of the total revenue of Cipla.