Cipla's board approves to acquire two biotech companies

The board of Cipla in its meeting on 15 June 2010 has approved the acquisition of 40% stake in a biotech company based in India through subscription of fresh shares of the company. The biotech company is setting up a state of the art facility for biosimitar products in Goa. Cipla will have rights to market all biosimilar products of the company in India and in international markets. The board has approveed the acquisition of 25% stake in a biotech company in Hong Kong through subscription of fresh shares of the company. The investment will be made by Cipla through a wholly owned overseas subsidiary. The biotech company is setting up a state of the art facility for biosimilar products in Shanghai, China. Cipla will have rights to market biosimilar products of this biotech company in India and in international markets. The total investment for both the aforesaid biotech companies is estimated to be about USD 65 million in a phased manner over a period of 3 years.