Cipla gains on acquiring stake in GoApptiv

Cipla gained 1.38% to Rs 648.7 after the drug major said it signed agreements on 9 June 2020, to acquire 21.85% stake in GoApptiv on a fully diluted basis.

Cipla will acquire 21.85% in GoApptiv in two stages for a total cash consideration of Rs 9 crore. In the first stage, the drug major will invest Rs 5.80 crore to subscribe 15,392 compulsorily convertible preference shares and 6,927 equity shares within 30 days from the execution date. In the second stage, Cipla will invest Rs 3.2 crore to subscribe 12,314 compulsorily convertible preference shares by 31 October 2020, subject to certain conditions precedent.

GoApptiv offers digital solutions for integrated brand sales management, digital marketing, channel engagement for pharmaceutical companies. It also provides digital solutions for customer relationship management, patient support and healthcare data analytics.

GoApptiv has turnover of Rs 19.03 crore for the financial year ending on 31 March 2020 according to its provisional financial statements.

Through an equity investment, Cipla will strengthen its partnership with GoApptiv so as to enable widening reach of its key brands in the Tier 3+ towns through GoApptiv's solutions for end-to-end brand marketing and channel engagement.

Cipla is a global pharmaceutical company focused on complex generics, and deepening portfolio in India, South Africa, North America, and key regulated and emerging markets.

On a consolidated basis, the drug maker's net profit declined 33% to Rs 245.95 crore on a 0.7% rise in net sales to Rs 4301.60 crore in Q4 March 2020 over Q4 March 2019.

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