Cipla, a Rs. 15,900 crore plus fourth largest Indian pharma company, has entered into a joint venture agreement with Jiangsu Acebright Pharmaceutical Co Ltd to form a joint venture in China.
As per the agreement, Cipla EU will hold 80 per cent stake in the joint venture, while the rest 20 per cent will be with Acebright.
The JV company will be in the business of manufacturing, selling and distribution of pharmaceutical products, research and development services, analytical development services with the purpose of providing high quality and affordable drugs.
Cipla EU, a wholly subsidiary of Cipla will invest upto US$ 24 million over a period of 4 which the shares are acquired years from the date of incorporation of JV company for acquiring 80 per cent stake.
Upon incorporation, the JV company will become a subsidiary of outside the main line of business of Cipla.