Cipla plans acquisitions to enter new therapies, boost Africa business

Cipla is taking the acquisition and product in-licensing route to consolidate its business in Africa, the company’s second-largest market after India.

Africa contributed 22 per cent to Cipla’s consolidated revenue in 2017-18. Also, Ebitda margin in South Africa is higher than the company’s consolidated margin of 18.6 per cent in 2017-18.

The company is looking at inorganic growth opportunities to offset delays in product approvals and decline in the institutional tender business.

Last week Cipla acquired Mirren, a South African over-the-counter (OTC) medicine manufacturer and distributor for Rs 2.28 billion.

The acquisition adds cold, flu and pain relief brands to Cipla’s kitty, and is