Drug major Cipla has inked a pact with Biopharma SPA for establishing a joint venture company in Algeria to manufacture and market respiratory products.
"Cipla (EU) Ltd, a wholly-owned subsidiary of the company has entered into a definitive agreement with Biopharma SPA for establishing a joint venture company in Algeria," Cipla said in a regulatory filing.
In February this year, the company had inked a binding term sheet with the company's existing partner, Biopharma SPA, for establishing the JV firm.
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The JV company will manufacture and market respiratory products facilitating Cipla's front-end presence in Algeria.
As per the agreement details shared in February, Cipla (EU) Ltd, will hold a 40 per cent stake in the JV company while the remainder will be held by a Biopharm-led Algerian consortium.
The JV firm is expected to make an investment of up to USD 15 million in the construction of a manufacturing facility.
Shares of Cipla today ended at Rs 680.15 apiece, up 2.5 per cent from previous close on the BSE.
