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Shares of pharmaceutical company Cipla has surged 5% to Rs 697 on BSE after the company, through its UK-based subsidiary Cipla (EU) Limited, entered into a joint venture (JV) agreement with Cipla’s existing business partners in Morocco – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and the Pharmaceutical Institute (PHI).
The JV Company will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria.
As per the term sheet, the Company’s wholly owned subsidiary, Cipla (EU) Limited, will hold a 40% stake in the JV Company while the remainder will be held by a Biopharm-led Algerian consortium. The JV Company is expected to make an investment of up to USD 15 million in the construction of a manufacturing facility, Cipla said in a statement.
Cipla (EU) Limited’s initial investment in cash in the JV Company is expected to be $6 million. In a another regulatory filing, Cipla said it has signed a definitive agreement to acquire 60% stake of Jay Precision Pharmaceuticals Private, Mumbai, from the existing shareholders, for a cash consideration of Rs 96 crore.
Meanwhile, the company said it has reported 15.3% year-on-year (yoy) growth in consolidated net profit at Rs 328 crore for the third quarter ended December 31, 2014 (Q3FY15). Income from operations grew by 6.5% to Rs 2,765 crore on yoy basis. EBIDTA margin (as % of income from operations) increased 200 bps at 20% in Q3 FY15 as compared to Q3 FY14.
The JV Company will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria.
As per the term sheet, the Company’s wholly owned subsidiary, Cipla (EU) Limited, will hold a 40% stake in the JV Company while the remainder will be held by a Biopharm-led Algerian consortium. The JV Company is expected to make an investment of up to USD 15 million in the construction of a manufacturing facility, Cipla said in a statement.
Cipla (EU) Limited’s initial investment in cash in the JV Company is expected to be $6 million. In a another regulatory filing, Cipla said it has signed a definitive agreement to acquire 60% stake of Jay Precision Pharmaceuticals Private, Mumbai, from the existing shareholders, for a cash consideration of Rs 96 crore.
Meanwhile, the company said it has reported 15.3% year-on-year (yoy) growth in consolidated net profit at Rs 328 crore for the third quarter ended December 31, 2014 (Q3FY15). Income from operations grew by 6.5% to Rs 2,765 crore on yoy basis. EBIDTA margin (as % of income from operations) increased 200 bps at 20% in Q3 FY15 as compared to Q3 FY14.
The stock opened at Rs 662 and touched a high of Rs 702 on BSE. Till 0953 hours, a combined 2.12 million shares changed hands on the counter on BSE and NSE.
