Cipla slips amid initial volatility

Cipla fell 0.49% to Rs 732.80 at 09:22 IST on BSE, after the company said that its UK-based wholly owned subsidiary has entered into a definitive agreement for acquisition of 100% stake in Duomed.

The announcement was made before market hours today, 9 April 2015.

Meanwhile, the S&P BSE Sensex was up 98.40 points or 0.34% at 28,806.15

On BSE, so far 15,308 shares were traded in the counter as against average daily volume of 2.13 lakh shares in the past one quarter.

The stock was volatile. The stock hit high of Rs 742 and low of Rs 731 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 368.70 on 30 May 2014.

The large-cap company has equity capital of Rs 160.59 crore. Face value per share is Rs 2.

Cipla said that the company's wholly owned subsidiary of Cipla (EU), UK, has entered into a definitive agreement for acquisition of 100% stake in Duomed Produtos Farmaceuticos Ltda. (Duomed), a limited liability company in Brazil for a cash consideration of Brazilian Real (R$) 1,293,600 (approx. Rs 2.6 crore). Duomed was incorporated on 10 June 2013. It has in place approval of ANVISA (Brazilian health authority) and other regulatory authorities to import and distribute pharmaceutical products in Brazil. The acquisition is part of company's front-end strategy and will expedite its product registrations in Brazil.

None of the persons belonging to promoter/promoter group(s) of the company has any interest in the transaction and it is not a related party transaction for the company. The transaction is expected to be completed by end of May 2015, subject to certain closing deliverables, Cipla said.

Cipla's consolidated net profit rose 15.3% to Rs 327.85 crore on 2.2% growth in net sales to Rs 2624.71 crore in Q3 December 2014 over Q3 December 2013.

Cipla is a global pharmaceutical company which uses cutting edge technology and innovation to meet the everyday needs of all patients.

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