Leading pharmaceutical company, Cipla announced that it had signed agreements to buy a 51 per cent stake in a pharmaceutical manufacturing and distribution business in Yemen, owned by a UAE-based parent company.
A statement from Cipla said it will pay US $ 21 million for the transaction, “with additional considerations to be paid over the next three years on achievement of agreed milestones.’’
Cipla said the closing of the transaction is subject to completion of certain conditions precedent.
Given the recent preference to local manufacturing, this secures Cipla’s presence in a fast growing market as it already has a leading position in Yemen with over 200 products, it said.
This is Cipla’s second acquisition in June and follows its acquisition of 60 per cent stake in a Sri Lanka-based company for $ 14 million a fortnight ago.
On the Bombay Stock Exchange, Cipla moved up marginally by 0.15 per cent to close trading at Rs 437.95 after scaling an intra-day high of Rs 445.
