Cipla inks pact to buy 51% stake in Yemeni Co

Continuing its overseas acquisitions, pharma firm Cipla has inked a pact with a Yemeni firm to acquire its majority stake for $21 million (over Rs 125 crore).

The company has signed a definitive agreement to acquire a 51 per cent stake in a pharmaceuticals manufacturing and distribution business in Yemen, it added.

"The company will pay $21 million for this transaction, with additional considerations to be paid over the next 3 years on achievement of agreed milestones," Cipla said.

Given the recent preference to local manufacturing, this secures the company's presence in a fast-growing market. Cipla already has a leading position in Yemen with over 200 products, it added.

As part of its global expansion, Cipla had completed the buyout of South African pharma firm Cipla Medpro for Rs 2,707 crore last year.

It had also acquired Croatia-based firm Celeris, distributor of its products in that country last December.

Shares of Cipla were on Monday trading at Rs 441 per scrip in the afternoon trade on the BSE, up 0.85 per cent from its last close.