The drug major on Friday announced that it has signed definitive agreements for acquiring 21.05% stake (on a fully diluted basis) in Bengaluru-based Achira Labs for a cash consideration of Rs 25 crore.
Achira Labs is an ISO 13485 compliant company engaged in development and commercialization of point of care (PoC) medical test kits in India. It develops medical diagnostic products using microfluidic technology. Achira aims to bring sophisticated medical tests closer to the point of diagnosis, treatment and management through its innovative solutions and cutting-edge research, by leveraging its capabilities, strong collaborations, and deep expertise.
Cipla said that investment will enable it to enter into the business domain of designing, developing and manufacturing microfluidics-based PoC immunoassay and molecular assay technologies. Post-acquisition, Achira will become an associate of Cipla.
A PoC that enables rapid identification of the bug causing an infection would be extremely helpful in choosing the appropriate antibiotic early in the treatment process. Achira is developing PoC immunoassays and molecular assays across the clinical areas of infectious diseases, AMR and hormone analysis among others.
Commenting on the development, Achin Gupta, CEO, One India Business, Cipla said, "This investment will further our commitment of bringing innovative, affordable and quality diagnostic solutions for all. We are guided by our purpose of caring for life and will continue to make strategic investments to ensure access to point of care test kit solutions."
The transaction is expected to be complete within 60 days from the signing of definitive agreements or such other date mutually agreed between the parties and will be subject to conditions precedent set out in the definitive agreements, the company stated.
Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets.
The pharma company's consolidated net profit fell 12.4% to Rs 362 crore on 14.2% increase in total revenue from operations to Rs 5,260 crore in Q4 March 2022 over Q4 March 2021.
Shares of Cipla fell 2.66% to settle at Rs 915.60 on Friday, 17 June 2022.
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