Cipla gains on postponing Medpro buy over valuation

Cipla has deferred acquisition of South African pharma firm Cipla Medpro because of valuation issues

Cipla shares were up 2.5% at RS 390 on reports that the company has postponed plans to acquire a South African firm on account of high valutaions.

Indian pharma major Cipla has decided to defer its $220 million acquisition plan of the third largest South African drugmaker Cipla Medpro due to valuation issues, Economic Times reported.

The acquisition could have given Cipla access to the lucrative $3-billion African drug market, the report said.

Analysts said it is a good move by Cipla to put the deal on hold, especially in a market dominated by AIDS and malaria drugs, the report added.

Over 1.1 million shares were traded on both the stock exchanges so far.