Joint Venture Cipla to Invest in new Pharmaceutical Plant in Morocco
Global pharmaceutical company Cipla’s wholly owned subsidiary, Cipla (EU) Limited, UK has entered into a joint venture agreement with Cipla’s existing business partners in Morocco to establish a front-end presence in Morocco’s pharmaceutical market.
Mumbai/India – Cipla has established a strong presence in Morocco for over a decade via its business partners Societe Marocaine De Cooperation Pharmaceutique (“Cooper Pharma”) and The Pharmaceutical Institute (PHI). The new joint venture 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 joint venture 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) Limited will hold 60% stake in the joint venture, while Cooper Pharma and PHI shall together hold 40% stake. Cipla (EU) Limited’s expected investment in cash in the joint venture is estimated at up to USD 15 million.
Commenting on the announcement, Subhanu Saxena, MD & Global CEO, Cipla Limited said: “Morocco is an attractive pharmaceutical market in the African continent. This joint venture 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 joint venture will further strengthen Cipla’s relationship.”
The transaction remains subject to conditions precedent and applicable regulatory approvals.