Cipla buys 60% stake in Sri Lankan company for $14 million

New company will market Cipla's products in Sri Lanka

Pharmaceutical firm Cipla Ltd today said it has acquired 60% stake in a new company in Sri Lanka for $14 million (nearly Rs 85 crore) to market its product in the country.

Cipla (Mauritius) Ltd, a wholly owned subsidiary of the Indian company, has signed a definitive agreement with its existing Sri Lankan distributor for acquisition of 60% stake in a new company, Cipla said in a filing to the BSE.

The new company will market the Cipla's products in Sri Lanka, it added.

"The consideration payable for the transaction is $14 million," the filing said, adding that the proposed acquisition was subject to regulatory approvals.

As part of its global expansion, Cipla has been active in acquisitions.

Last year, it completed the buyout of South African pharma firm Cipla Medpro for Rs 2,707 crore.

Cipla had also acquired Croatia-based firm Celeris, distributor of its products in that country last December.

Shares of Cipla were trading at Rs 411.30 per scrip in the afternoon trade, down 0.56% from the previous close on the BSE.