Cipla inks pact with Biopharma SPA to establish joint venture in Algeria

NEW DELHI: 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.

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 $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.