Cipla to invest in UK subsidiary

Made jointly with UK govt, investment will fund launch of respiratory, oncology and antiretroviral drugs

After its five acquisitions in one year, Cipla, the  pharmaceutical company based here, is putting £100 million (Rs 1,030 crore) in its British subsidiary.  The investment will be made in collaboration with the UK Government. George Osborne, their chancellor of the exchequer, said: “The investment will fund the launch of a range of drugs in the areas of respiratory, oncology and antiretroviral medicines, as well as research and development, clinical trials and further expansion internationally and in the UK.”  Cipla stated it wished to contribute cost-effective solutions for Britain’s National Health Service, on the 66th anniversary of the latter’s establishment. “We were impressed with the pro-active support and engagement the UK government showed in attracting Cipla to choose the UK as a key hub in our global footprint,” said Rajesh Garg, global chief financial officer. On Monday, Cipla shares closed at Rs 449.3, up by 0.3 per cent on the BSE.

Last week, Cipla Ltd had announced its acquisition of a pharmaceuticals manufacturing and distribution business in Yemen for $21-million

Last month, Cipla had acquired 60% stake in a Sri Lanka-based company for $14 million Since 2013, Cipla has made about 5 acquisitions in various countries. After completing buyout of Cipla Medpro for $512 million in June 2013, Cipla acquired 14.5% stake in Uganda-based Quality Chemical Industries, 100% buyout of Croatia-based Celeris in December 2013 and 60% buyout of Sri-Lankan distributor.