Cipla rose 0.41% to Rs 552 at 12:50 IST on BSE after the company said that its UK-based subsidiary has divested its stake in Chase Pharmaceuticals to Allergan.
The announcement was made during trading hours today, 23 November 2016.Meanwhile, the BSE Sensex was up 38.86 points, or 0.15%, to 25,999.64.
On BSE, so far 80,000 shares were traded in the counter, compared with average daily volume of 1.70 lakh shares in the past one quarter. The stock hit a high of Rs 559 and a low of Rs 547.85 so far during the day. The stock hit a 52-week high of Rs 660 on 29 December 2015. The stock hit a 52-week low of Rs 458.25 on 25 May 2016. The stock had outperformed the market over the past 30 days till 22 November 2016, falling 6.03% compared with the 7.87% decline in the Sensex. The scrip had also outperformed the market in past one quarter, falling 2.85% as against Sensex's 7.48% decline.
The large-cap company has equity capital of Rs 160.85 crore. Face value per share is Rs 2.
Cipla announced that Chase Pharmaceuticals Corporation, a Delaware based corporation (Chase) (in which Cipla's UK arm, Cipla (EU), (Cipla UK) has 16.7% stake) has been acquired by a subsidiary of Allergan, plc. Allergan has agreed to pay $125 million upfront plus potential regulatory and commercial milestones of up to $875 million to the shareholders of Chase. Cipla UK acquired a minority stake in Chase in May 2014 via a syndicated venture investment.
Chandru Chawla, Head of Corporate Strategy and Cipla New Ventures said, Cipla Group is proud to have made a meaningful contribution in advancing an Alzheimer's drug to an advanced stage of development where the product has now successfully concluded Phase 2 study. Chase's pipeline will be successful at Allergan, given their strength as a leading CNS commercial franchise, he added.
Chase Pharmaceuticals Corporation is a clinical-stage biopharmaceutical company focused on the development and commercialization of improved treatments for neurodegenerative disorders.
On a consolidated basis, Cipla's net profit dropped 34.75% to Rs 354.34 crore on 8.66% rise in net sales to Rs 3671.88 crore in Q2 September 2016 over Q2 September 2015.
Cipla is a global pharmaceutical company.
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