Cipla to form JV with Biopharm SPA for respiratory products in Algeria

Cipla will form a joint venture Biopharm SPA, the Algeria-based pharmaceutical product manufacturer and distributor, for manufacturing and marketing respiratory products. As per the agreement, Cipla (EU) Limited, the Mumbai-based drug maker’s wholly-owned subsidiary, will hold a 40 percent stake in the JV while the remainder will be held by a Biopharm-led Algerian consortium. The joint venture company is expected to make an investment of up to $ 15 million in the construction of a manufacturing facility. Cipla (EU) Limited is initially expected to invest $ 6 million in the JV.
 
“A binding term sheet has been entered into with the company's existing partner, Biopharm SPA, for establishing a joint venture company in Algeria. The JV will manufacture and market respiratory products facilitating Cipla’s front-end presence in Algeria,” said Cipla Ltd in a BSE filing.
 
The transaction is subject to execution of definitive agreement and applicable approvals, added Cipla.