India’s Cipla Group buys majority stake in JV with local drug importer, Citihealth
India’s top drug producer, the Cipla Group is taking a 60 per cent stake in a new Sri Lankan-based joint venture with local drug importer, Citihealth who would hold the balance 40 per cent, it was announced this week.
Cipla’s stake is coming through Cipla (Mauritius) Ltd, a wholly owned subsidiary of Cipla Ltd and the new company is aiming at setting up a manufacturing facility in Sri Lanka.
In a media release Citihealth says it is one of the largest pharmaceutical companies in Sri Lanka and is the local distributor for Cipla products. “This new company is a long-term strategy that paves the way for the future expansion of both companies and this joint venture agreement will now accelerate our plans for a manufacturing facility in Sri Lanka,” said Chandra Jayaratne, Chairman Citihealth, in the statement.
Cipla, through Citihealth, has been in the forefront of marketing anti-asthmatic products in Sri Lanka and supplies HIV drugs to the local market at affordable prices. As part of its global expansion, Cipla has been active in acquisitions and has been a leading player in the Sri Lankan market with a presence of over 18 years, the statement added.
Established in 1996, Citihealth is one of the largest pharmaceutical companies in Sri Lanka, holding the agency for seven of the leading pharmaceutical companies from India and Bangladesh.
Cipla is a global pharmaceutical company headquartered in Mumbai which uses cutting edge technology and innovation to meet the everyday needs of all patients. For more than 70 years, Cipla has emerged as one of the most respected pharmaceutical names in India as well as across more than 170 countries, the statement said. Cipla’s turnover in 2012/13 was US$1.5 billion.