Medispray Laboratories Private Limited, a wholly owned subsidiary of Mumbai-based drugmaker Cipla Ltd, is acquiring two manufacturing units of private firms associated with Hamieds, the promoter of Cipla, for Rs 101 crore ($16.7 million) as per a company statement.
A significant portion of the capacities of the two undertakings is already dedicated for the manufacture of Cipla's products. The first manufacturing facility is located in Goa and is owned by Okasa Private Limited whereas the second manufacturing facility is located at Satara (Maharashtra) and is owned by Okasa Pharma Pvt Ltd.
Both privately held firms are owned by people associated with Hamieds.
The consideration for the above two transactions are Rs 29 crore and Rs 71.93 crore, respectively.
Okasa manufactures and distributes more than 800 pharmaceutical products in core therapeutic categories, including medicinal aerosols and devices, oncology products, antiretrovirals, cardiovascular drugs, anti-infectives, antifungals, antiallergics, dermatologicals, drugs for pain management and psychotherapeutics.
The valuation of the two transactions was supported by reports from Price Waterhouse & Co. LLP and fairness opinions provided by Kotak Mahindra Capital Company Limited, the company said.
Generic drugmaker Cipla has been aggressively growing its footprint internationally through acquisitions to increase its market share. Last month the company announced its plans to acquire 51 per cent stake in a UAE-based pharma company. Earlier the company acquired 60 per cent stake in a Sri Lankan company for $14 million.
Cipla restarted its inorganic expansion phase last year when it acquired its distribution partner in South Africa—Cipla Medpro South Africa Ltd—for $512 million. This was the company’s first acquisition in three years. In 2010, it acquired stake in Meditab Specialities Pvt Ltd, a stake in Mabpharm and a drug formulation facility in Sikkim.
Earlier this year Cipla announced that Meditab Specialities Private Limited (MSPL), a wholly owned subsidiary of the company, had acquired the remaining 75 per cent stake in biotech firm Mabpharm Private Limited (Mabpharm) for an undisclosed amount.
(Edited by Joby Puthuparampil Johnson)