Cipla rose 2.02% to Rs 677.30 a 10:45 IST on BSE on renewed buying interest after the company announced an investment led by Fidelity Growth Partners India into the newly launched Consumer Healthcare business.
The announcement was made before market hours yesterday, 21 July 2015.
The stock had dropped 2.79% to Rs 663.90 yesterday, 21 July 2015.
Meanwhile, the BSE Sensex was up 123.29 points, or 0.45%, to 28,307.71.
On BSE, so far 23,824 shares were traded in the counter, compared with an average volume of 1.66 lakh shares in the past one quarter.
Shares of pharma company hit a high of Rs 677.80 and a low of Rs 664.85 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 430.35 on 8 August 2014.
Cipla announced that the company's board has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II or its affiliates, in its recently launched consumer healthcare business which is under incorporation.
The investment is subject to execution of definitive agreements, and regulatory approvals. Through Cipla Consumer Healthcare, the company has entered the rapidly growing over-the-counter (OTC) healthcare market in India. The vision is to improve the lives of Indian consumers, building on Cipla's strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system.
The idea is to leverage Cipla R&D and innovation platform to provide innovative solutions to meet the unmet needs of the Indian consumer. The business will focus on opportunities arising from the shift from illness to wellness and self-care.
The board approval is subject to execution of binding agreements, and the transaction will be subject to relevant regulatory approvals. None of the persons belonging to promoter / promoter group(s) of the company has any interest in the transaction.
The Indian Consumer Health Care (CHC) is currently a $4 billion market and is growing at a CAGR of 15%. It is expected to be a $10 billion market by 2020. Cipla's CHC division recently launched its first product Nicotex, a gum which helps smokers quit the habit. This product is a switch from its prescription business and has had a very successful launch in the South of the country.
Cipla's consolidated net profit fell 0.4% to Rs 259.66 crore on 20.8% rise in total income to Rs 3153.89 crore in Q4 March 2015 over Q4 March 2014.
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