Cipla falls in volatile trade

Cipla fell 1.92% to Rs 385 at 11:54 IST on BSE in volatile trade after the company said its wholly owned subsidiary has signed a definitive agreement to acquire partial stake in Chase Pharmaceuticals Corporation Inc, US.

The announcement was made during market hours today, 12 May 2014.

Meanwhile, the S&P BSE Sensex was up 371.72 points or 1.62% at 23,365.95

On BSE, so far 1.46 lakh shares were traded in the counter as against average daily volume of 2.33 lakh shares in the past one quarter.

The stock was volatile. The stock rose as much as 0.49% at the day's high of Rs 394.50 so far during the day. The stock fell as much as 2.02% at the day's low of Rs 384.60 so far during the day. The stock had hit a record high of Rs 450 on 16 September 2013. The stock had hit a 52-week low of Rs 364.05 on 3 June 2013.

The stock had underperformed the market over the past one month till 9 May 2014, falling 1.86% compared with 1.29% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 5.89% as against Sensex's 12.85% rise.

The large-cap company has equity capital of Rs 160.58 crore. Face value per share is Rs 2.

Cipla said that Cipla (EU), UK, (Cipla) a wholly owned subsidiary of the company has signed a definitive agreement to invest $1.5 million in Chase Pharmaceuticals Corporation Inc, US (Chase) to acquire 14.6% stake in Chase on a fully diluted basis. Cipla will make an additional $4.5 million investment in Chase upon achievement of certain milestones. Chase is an early stage drug development company developing novel approaches to improve treatments for Alzheimer's disease, Cipla said in a statement.

Cipla's consolidated net profit fell 16.5% to Rs 284.31 crore on 23.3% growth in net sales to Rs 2552.63 crore in Q3 December 2013 over Q3 December 2012.

Cipla is a pharmaceutical company. With over 34 manufacturing units across the country, Cipla manufactures over 2,000 products in 65 therapies. With a turnover of $1.5 billion, Cipla serves doctors and patients in over 170 countries.

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