Acquisition of Mirren to help Cipla strengthen OTC segment

India’s pharmaceutical major Cipla has informed bourses that its wholly-owned subsidiary Cipla Medpro South Africa (Pty) Ltd has entered in an agreement to acquire the entire stake in South Africa based Mirren (Pty) Limited.

For this acquisition, the company will be paying Rs. 45 crore which will be settled through cash. For fiscal year 2018, the company reported revenue of Rs. 15.2 crore which was up by almost 24 per cent from the preceding fiscal.

The company stated that this acquisition will help Cipla gain market share and grow in OTC segment. The expected time for completion of this transaction is September 2018.

The company also plans to take full leverage of this acquisition to deliver on its ethos of Caring for Life, by providing quality, affordable medical products.

Meanwhile, the stock of Cipla in Thursday’s trading session was trading positive. The stock on Thursday opened gap up at Rs. 630 per share as against previous close of Rs. 624.7. At 14.33 hours, the stock was trading at Rs. 633.4 per share, up by almost 1.4 per cent.