Cipla Ltd said it has formed a joint venture (JV) with Chinese firm Jiangsu Acebright Pharmaceutical Co. Ltd, as the Indian drugmaker seeks to make a fresh push into the Asian country.
As part of the agreement, Cipla will invest up to $24 million (Rs 164 crore) in the JV over four years, said the Mumbai-listed drugmaker in a stock market disclosure.
Cipla will hold 80% stake in the JV and Acebright the rest.
The JV will be engaged in the manufacturing, selling and distribution of pharmaceutical products. It will also be involved in research and development and analytical development services with the aim of providing affordable drugs.
The transaction is subject to regulatory approvals, said Cipla.
In October 2016, VCCircle had reported that Cipla was trying to make a fresh push into China after scaling down in the country over the past three to four years.
In December 2014, the firm sold its stake in Jiangsu Cdymax Pharmaceuticals for $18.5 million.
In October 2015, Cipla also divested its entire 25% stake in Hong Kong-based biosimilar drug company Biomab Holding Ltd to its JV partner Biomab Brilliant Ltd for $25.7 million (about Rs 168 crore).