The Mumbai-based Cipla Ltd, through its UK-based subsidiary Cipla (EU) Limited, has entered into a joint venture (JV) agreement with Cipla’s existing business partners in Morocco – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and the Pharmaceutical Institute (PHI).
Cipla has established a strong presence in Morocco for over a decade via its business partners. This JV will enable Cipla to establish a front-end presence in Morocco’s pharmaceutical market, becoming the launch vehicle for Cipla’s portfolio while leveraging the commercial strengths of partners. The initial focus of the JV will be respiratory and neurology products and it will also invest in setting up a manufacturing facility in Morocco.
As per the agreement, Cipla (EU) Limited will hold 60 percent stake in the JV, while Cooper Pharma and PHI will together hold 40 percent stake. Cipla (EU) Limited’s expected investment in cash in the JV is estimated at up to $ 15 million.
Subhanu Saxena, MD & global CEO, Cipla Limited, said, “Morocco is an attractive pharmaceutical market in the African continent. This JV is aimed to strengthen Cipla’s presence in Morocco, which is in-line with our global growth strategy to build front-end presence in key markets. Cipla has enjoyed a long-standing business relationship with Cooper Pharma and PHI for over a decade and this JV will further strengthen Cipla’s relationship.”
The transaction remains subject to conditions precedent and applicable regulatory approvals.
Cooper Pharma and PHI are the leading pharmaceutical companies in Morocco, engaged in pharmaceutical manufacturing, import, promotion and distribution activities.
Reference: 1. Press release Cipla, 9th of Feb, 2015, Cipla’s U.K. subsidiary enters into a joint venture agreement with existing partners Cooper Pharma and The Pharmaceutical Institute (PHI).