Companies

Cipla to buy 51% in Yemen distribution company

Our Bureau Mumbai | Updated on March 12, 2018

This is the second acquisition of Cipla this month. Two weeks ago, it had acquired 60 per cent stake in a Sri Lanka-based company for $14 million.

In its fourth transaction in eight months, Cipla has agreed to pick up a 51 per cent stake in a drug manufacturing and distribution company in Yemen, for a consideration of $21 million (about ₹125 crore).

The Indian drug-maker already markets about 200 products in Yemen, the company said.

There would be additional payments, Cipla said, and these would be paid over the next three years on the achievement of certain agreed milestones.

The move would help Cipla establish its presence in the fast-moving market, it said, given the Government preference for local manufacturing.

Ramp-up

Cipla has been ramping up its presence in distribution companies over the last several months.

Earlier this month, the company had agreed with its Sri Lankan distributor to pick up a 60 per cent stake in a new company that would handle distribution in the island nation. Cipla was to fork out $14 million for that transaction.

Last December, Cipla had consolidated its distribution in Croatia, by picking up a 100 per cent stake in its distribution arm.

Last year had also seen two other transactions in the African markets.

Cipla took majority control in Ugandan drug-maker Quality Chemical Industries, even as it completed acquisition of Cipla Medpro in South Africa.

Published on June 30, 2014

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