Cipla firms up after Chinese joint venture

Cipla gained 1.19% to Rs 557.3 at 10:55 IST on the BSE after the company said it entered into a joint venture agreement with China's Jiangsu Acebright Pharmaceutical Company.

The announcement was made after market hours, yesterday, 15 July 2019.

Meanwhile, the S&P BSE Sensex was up by 120.45 points or 0.31% to 39,017.16.

On the BSE, 12000 shares were traded in the counter so far compared with average daily volumes of 32000 shares in the past two weeks. The stock had hit a high of Rs 558.55 and a low of Rs 547.25 so far during the day. It hit a 52-week high of Rs 678 on 19 September 2018 and a 52-week low of Rs 483.75 on 29 January 2019.

Cipla announced that its wholly-owned subsidiary, Cipla (EU), has entered into a joint venture agreement with China's Jiangsu Acebright Pharmaceutical Company on 15 July 2019 for incorporation of a joint venture (JV) company in China.

The JV company will be in the business of manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services with the purpose of providing high quality and affordable drugs.

As per the agreement, Cipla EU will hold 80% stake and the Chinese partner will hold 20% stake in the JV firm. Cipla EU's investment in the JV company is estimated up to $24 million over a period of 4 years.

On a consolidated basis, the company's net profit increased 57.9% to Rs 357.68 crore on 22.2% rise in net sales to Rs 4271.00 crore in Q4 March 2019 over Q4 March 2018. Cipla will consider Q1 results on Wednesday, 7 August 2019.

Cipla is one of the leading pharmaceutical companies in India.

Powered by Capital Market - Live News