The agreement facilitates Cipla with a front-end presence in Morocco and enables it to develop a platform for the future with acquisition of highly strategic product portfolio
Cipla announced that its wholly owned subsidiary, Cipla (EU), UK 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 shall be respiratory and neurology products and it shall also invest in setting up a manufacturing facility in Morocco.
As per the agreement, Cipla (EU) will hold 60 per cent stake in the JV, while Cooper Pharma and PHI shall together hold 40 per cent stake. Its expected investment in cash in the JV is estimated up to $15 million.
Commenting on the announcement, Subhanu Saxena, Managing Director and Global Chief Executive Officer, Cipla 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.