Cipla rose 0.81% to Rs 567.95 at 9:16 IST on BSE after the company announced the commercial collaboration with UK-based S&D Pharma in the Czech Republic and Slovakia.
The announcement was made after market hours on Monday, 8 September 2014.
Meanwhile, the BSE Sensex was down 51.06 points, or 0.19%, to 27,268.79.
On BSE, so far 6,549 shares were traded in the counter, compared with an average volume of 2.15 lakh shares in the past one quarter.
The stock hit a high of Rs 569 and a low of Rs 566 so far during the day. The stock hit a record high of Rs 575.20 on 2 September 2014. The stock hit a 52-week low of Rs 366.70 on 24 February 2014.
The stock had outperformed the market over the past one month till 8 September 2014, rising 29.07% compared with 7.86% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 42.43% as against Sensex's 7.57% rise.
The large-cap company has an equity capital of Rs 160.58 crore. Face value per share is Rs 2.
Cipla said the collaboration will enable Cipla to focus on its core therapy areas, while S&D Pharma will be the key partner for generics.
Under the collaboration, Cipla will be driving its respiratory product portfolio in both Czech Republic and Slovakia through a Cipla owned sales force team, managed by Cipla commercial head. S&D Pharma will physically distribute all products, including respiratory products, and this portfolio will increase over the next few years.
Mr. Frank Pieters, Head Cipla Europe said, "We are excited to partner with S&D Pharma and believe that this collaboration will enable us to drive access in the Czech Republic and Slovakia across therapy areas in the coming years."
Mr. Daniel Straus, CEO S&D Pharma said, "We are delighted to extend our cooperation with such an innovative company as Cipla and to have the opportunity to further develop the Cipla brand and portfolio in our markets. Through this collaboration we have secured a competitive and varied product pipeline for the future and very much look forward to contributing to the future success of Cipla's respiratory range."
S&D Pharma is UK-based company which, in partnership with its local offices, represents global pharmaceutical companies and manages the promotion and distribution of their products in Central Europe. Additional support available includes the provision of Pharmacovigilance, EU batch release and regulatory services. S&D Pharma also operates a pre-wholesaling facility in Bulgaria, supplying a broad range of products to national wholesalers.
Meanwhile, Cipla announced after market hours on Friday, 5 September 2014, that its wholly owned subsidiary Medispray Laboratories at its board meeting held on 5 September 2014 approved the acquisition of two manufacturing undertakings. The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore respectively. The first manufacturing facility located at Goa is owned by Okasa and the second manufacturing facility located at Satara (Maharashtra) is owned by Okasa Pharma. Entities controlled by relatives of the promoters hold majority interest in the companies which own the aforesaid undertakings, Cipla said.
A significant portion of the capacities of the two undertakings are dedicated for the manufacture of Cipla's products. Acquisition of the aforesaid undertakings is expected to yield operational synergies, Cipla said.
Cipla's consolidated net profit declined 39.3% to Rs 294.58 crore on 13.6% growth in net sales to Rs 2647.20 crore in Q1 June 2014 over Q1 June 2013.
Cipla is a global pharmaceutical company. Its portfolio includes 2000 products in 65 therapeutic categories with one quality standard globally.
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