Cipla India is to acquire a 25 percent stake in the manufacturing division (CMM) of South Africa's third largest pharmaceutical group Cipla Medpro South Africa, it was announced on Tuesday.
Ciplo Medpro SA said it was cognisant of the need to increase volume in CMM and so was inthe process of finalising an agreement with Cipla India regarding the acquisition the consideration of which will be a “nominal value”.
“Pursuant to this, Cipla India will provide additional volume and assist us in achieving World Health Organisation (WHO) and Food and Drug Administration (FDA) manufacturing approvals in the near future, resulting in increased orders and business for our factory.”
“This will ensure better continuity, increased capacity utilisation and further entrench the relationship with Cipla India,” the pharmaceutical group said.
It announced that during the past six months it has also initiated two new divisions, Cipla Consult (Pty) Limited and Cipla Nutrition (Pty) Limited.
“Although small in their start-up phase, these may lead to enhanced business benefits in the future,” it stated.
For the six months ended June, Ciplo Medpro SA reported a 56 percent increase in diluted headline earnings per share to 24.4 cents from 15.6 cents previously.
Profit for the period was up 59 percent to R108.7 million from R69.1 million for the six months to end June 2009 while basic earnings per share were up 58 percent to 24.6 cents from 15.6 cents the year before.
Group revenue was 29 percent higher at R714.3 million from R555.4 million.
Cipla Medpro achieved a gross margin of 57.9 percent when compared to 48.4 percent at end June 2009 and 50.7 percent for the full 2009 financial year.
Source: Busrep