Cipla gains after divesting remaining stake in Hong Kong based Biomab Holding

Cipla gained 0.6% to Rs 695.25 at 10:00 IST on BSE after the company said that it has divested its remaining stake in Hong Kong based Biomab Holding to focus on global development under Cipla BioTec.

The company made announcement after market hours yesterday, 29 October 2015.

Meanwhile, the S&P BSE Sensex was down 11.29 points or 0.04% at 26,826.85.

On BSE, so far 10,103 shares were traded in the counter as against average daily volume of 1.81 lakh shares in the past one quarter.

The stock hit a high of Rs 698.70 and a low of Rs 694.50 so far during the day. The stock had hit a record high of Rs 752.45 on 10 March 2015. The stock had hit a 52-week low of Rs 572 on 15 June 2015.

The large-cap company has equity capital of Rs 160.62 crore. Face value per share is Rs 2.

Cipla said that it has entered into a definitive agreement to sell its entire remaining 25% stake in Biomab Holding, Hong Kong (BHL) to Biomab Brilliant, British Virgin Islands, which holds remaining 75% stake in BHL, for a total consideration of $25.77 million. BHL is focused on developing Biosimilars for the Chinese market. The closing of the transaction is subject to conditions precedent and receipt of applicable regulatory and other approvals.

Going forward, the company's biological business will be consolidated under Cipla BioTec. Cipla BioTec will focus on research, development, manufacturing and marketing of Biosimilars, in the field of cancer, auto-immune diseases, respiratory diseases and diabetes. Through innovative technology and go to market solutions, it aims to create a transformational impact in the way these medicines are used.

Chandru Chawla, Head of Cipla New Ventures said: Cipla is seeing some very good momentum in its Biotech programs. Through Cipla BioTec the company will focus on global product development with the aim of making biological therapies accessible and affordable to patients in need.

Cipla's consolidated net profit surged 120.9% to Rs 650.61 crore on 42.7% rise in net sales to Rs 3776.82 crore in Q1 June 2015 over Q1 June 2014.

Cipla is a global pharmaceutical company. Cipla's product portfolio includes over 1,500 products in various therapeutic categories.

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