Cipla announces transfer of Generics Business Undertaking to subsidiary

Pharmaceutical company Cipla announced on Monday that the company's Board of Directors approved the transfer of its Generics Business Undertaking to Cipla Pharma and Life Sciences Limited (CPLS), a wholly-owned subsidiary of Cipla Limited, for a consideration of Rs 350 crores.

The generics business contributed 9.95 per cent of Cipla's turnover and 0.92 per cent of its net worth in the financial year ended March 31, 2023. The transaction is subject to the approval of the Board of Directors of CPLS and other necessary regulatory approvals. The effective date for the completion of the transfer to CPLS would be December 31, 2023, or such other date mutually agreed between the parties.

The move to transfer the Generics Business Undertaking is part of Cipla's strategy to capitalise on the fast-growing generic pharmaceutical market. By enabling more focused decision-making and increased investments in new launches, the company aims to improve patient access to high-quality generic medicines and deepen its presence in Tier 2-6 towns and cities.