Cipla to invest Rs 300 cr to buy stakes in 2 cos

Drug maker Cipla today said it will invest $65 million (nearly Rs 300 crore) over the next three years with a Chinese joint venture partner to acquire stakes in two biotech firms in India and Hong Kong.

The company's board, which met today, approved investments in two biotech firms that would entail an investment of $65 million over a period of three years, Cipla said in a statement.

Cipla, however, did not disclose the identities of the target companies but said it will have the rights to market all biosimilar products of the target companies in India and overseas markets.

The board approved acquisition of 40 per cent stake in an India-based biotech firm, which is setting up a state-of-the-art facility for biosimilar products in Goa, through subscription of fresh shares, it said.

Besides, the firm's board also approved acquisition of 25 per cent stake in a Hong Kong based biotech firm, which is setting up a facility to produce biosimilar products in Shanghai.

"The investment will be made by Cipla through a wholly-owned overseas subsidiary," it said, adding the company would have rights to market all biosimilar products of the target company in India and international markets.

Shares of Cipla today closed at Rs 337.85 on the BSE, down 0.69 per cent from its previous close.