Cipla to acquire Brazil's Duomed Produtos for Rs 2.6 crore

Deal has approval of Brazilian authorities to import and distribute pharmaceutical products in that country

Pharma major Cipla today said its UK subsidiary Cipla (EU) will acquire Brazilian firm Duomed Produtos Farmaceuticos for about Rs 2.6 crore.

"Cipla (EU) Ltd, UK, a wholly-owned subsidiary of Cipla, has entered into a definitive agreement for acquisition of 100 per cent stake in Duomed Produtos Farmaceuticos Ltd, for a cash consideration of Brazilian Real (R$) 1,293,600 (about Rs 2.6 crore)," Cipla said in a filing to the BSE.

The deal has the approval of Brazilian health authority (ANVISA) and other regulatory authorities to import and distribute pharmaceutical products in Brazil, the filing said.

The transaction is expected to be completed by end of May 2015, subject to certain conditions, it added.

The acquisition is part of Cipla's front-end strategy and will expedite its product registrations in Brazil.

Duomed Produtos, a limited liability company in Brazil, was incorporated on June 10, 2013.

Cipla shares were trading 1.60 per cent down at Rs 724.60 per scrip during morning session on the BSE.