The drug major on Monday said that it has entered into definitive agreements for further investment of Rs 25.90 crore in digital tech company GoApptiv.
Post completion of the deal, Cipla's total stake in GoApptiv will increase to 22.02% on a fully diluted basis.
GoApptiv is a digital tech company engaged in the business of offering digital solutions to pharmaceutical companies for increasing patient reach. It offers end to end business solutions including distribution, digital solutions, integrated brand sales management, digital marketing, patient support and healthcare data analytics, channel engagement etc., for healthcare companies.
The drug major said that the investment will be made in equity shares and compulsorily convertible preference shares and is likely to be completed within 30 days or such other date mutually agreed between the parties and shall be subject to fulfillment of necessary closing conditions.
The company's earlier investment in GoApptiv in June 2020 has yielded growth and expanded Cipla's channel reach across lower tier towns in India, the company stated.
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In an exchange filing, Cipla said that the follow-on investment shall strengthen firm's partnership with GoApptiv, enabling wider reach of its key brands in the tier 3+ towns through GoApptiv's solutions for end-to-end brand marketing and channel engagement. The new capital shall support GoApptiv's future growth plans and enable it to provide comprehensive solutions to its customers thereby benefitting the patients.
Commenting on the development, Umang Vohra , MD and Global CEO of Cipla said, "This investment will further strengthen our partnership with GoApptiv enabling wider patient reach with affordable and quality drugs and end-to-end brand marketing and channel engagement across tier 2-6 towns in India. 'Caring for Life' is at the heart of what we do and will guide us towards making such strategic investments to help make a difference in the lives of our patients."
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 were down 0.30% to Rs 929.45 on the BSE.
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