 "PE firm Fidelity to invest in Cipla's consumer healthcare business")
US-based private equity firm Fidelity International will invest in Cipla’s newly formed consumer healthcare business. “The company’s board has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its recently launched consumer healthcare business which is under incorporation. The investment is subject to execution of definitive agreements, and regulatory approvals,” said Cipla in a press release.
Through Cipla Consumer Healthcare, Cipla aims to tap the rapidly growing over-the-counter (OTC) healthcare market in India. “The vision is to improve the lives of Indian consumers, building on Cipla’s strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system. The idea is to leverage Cipla R&D and innovation platform to provide innovative solutions to meet the unmet needs of the Indian consumer,” added Cipla. Consumer healthcare business will focus on opportunities arising from the shift from illness to wellness and self-care.
Samina Vaziralli, executive director, Cipla Ltd, who has incubated this business at Cipla New Ventures, said, “Partnering with a long-term strategic and financial investor like Fidelity Growth Partners on this journey will help us create a best-in-class consumer healthcare business. In the consumer healthcare business we need a strong FMCG talent pool and the right ecosystem with a ‘pharma in/FMCG out’ mind-set.”
Raj Dugar, senior managing director, Fidelity Growth Partners India, added, “Over-the-counter consumer healthcare is a nascent but rapidly growing market in India, and one we are very excited about. This is a unique opportunity for us to partner with Cipla, a company that has long been associated with changing the paradigm of care to build a robust platform that delivers differentiated, high quality products for the Indian consumer. Using our combined knowledge and resources, we intend to provide OTC products that will bring significant benefits to the consumer.”
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The Indian consumer healthcare (CHC) market is currently estimated at $4 billion, with a CAGR of 15 percent. The CHC market is expected to be a $10 billion market by 2020. As a part of its strategy to tap this growing consumer healthcare market, Cipla’s CHC division recently launched its first product Nicotex, a gum which helps smokers quit the habit.
Commenting on Fidelity investment, Subhanu Saxena MD and global CEO, Cipla, said, “It has been my aspiration since joining the company that every person in India should have access to Cipla’s healthcare products that are available at a price affordable to them. The consumer healthcare business will help us to achieve this vision faster. This partnership with Fidelity clearly reinforces trust in our vision of having a word-class consumer healthcare business.”
Through Cipla Consumer Healthcare, Cipla aims to tap the rapidly growing over-the-counter (OTC) healthcare market in India. “The vision is to improve the lives of Indian consumers, building on Cipla’s strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system. The idea is to leverage Cipla R&D and innovation platform to provide innovative solutions to meet the unmet needs of the Indian consumer,” added Cipla. Consumer healthcare business will focus on opportunities arising from the shift from illness to wellness and self-care.
Raj Dugar, senior managing director, Fidelity Growth Partners India, added, “Over-the-counter consumer healthcare is a nascent but rapidly growing market in India, and one we are very excited about. This is a unique opportunity for us to partner with Cipla, a company that has long been associated with changing the paradigm of care to build a robust platform that delivers differentiated, high quality products for the Indian consumer. Using our combined knowledge and resources, we intend to provide OTC products that will bring significant benefits to the consumer.”
ALSO READ: Pfizer to close down Thane manufacturing plant
The Indian consumer healthcare (CHC) market is currently estimated at $4 billion, with a CAGR of 15 percent. The CHC market is expected to be a $10 billion market by 2020. As a part of its strategy to tap this growing consumer healthcare market, Cipla’s CHC division recently launched its first product Nicotex, a gum which helps smokers quit the habit.
Commenting on Fidelity investment, Subhanu Saxena MD and global CEO, Cipla, said, “It has been my aspiration since joining the company that every person in India should have access to Cipla’s healthcare products that are available at a price affordable to them. The consumer healthcare business will help us to achieve this vision faster. This partnership with Fidelity clearly reinforces trust in our vision of having a word-class consumer healthcare business.”