Cipla Medpro chief executive suspended

Suspension of top official at Cipla Medro will not impact relationship with Cipla in India

The suspension of a top official of pharmaceutical giant Cipla Medpro will not impact relationship with Cipla in India, with which it has an supply agreement, according to the board of Cipla Medpro.

The chief executive of South Africa's third largest generic pharmaceuticals company, Jerome Smith, was suspended last week.

Smith is said to have a very close relationship with top executives of Cipla India.

The company rose to be among the top three in the country after Smith tied up a deal with Indian generic medicines manufacturer Cipla.

Amid a drastic share price drop, the Cipla Medpro board has refused to give reasons for Smith's suspension. Smith established Medpro Pharmaceutica in 1993.

"There are a number of allegations against Jerome which I must stress are allegations and have not been proven", said Cipla Medpro board chairman Sbu Luthuli.

He said even if the unspecified allegations were proven, it would not have a material impact on the finances of the company.

Luthuli said the agreement between Cipla Medpro and Cipla India would not be affected by Smith's suspension.