Cipla to set up facility in Iran

Company will invest Rs 225 cr for 3 years

Mumbai-based Cipla Ltd has signed a definitive agreement with its existing Iranian distributor for setting up a manufacturing facility in Iran. The total contribution from the company over the next 3 years will include machinery, equipment, technical know-how and is expected to be approximately Rs 225 crore (Rs 2.25 billion) for a 75 per cent stake.

The proposed investment is subject to completion of certain conditions precedent and applicable regulatory approvals, said a statement.

Cipla is in process of expanding business into other Asian countries. Earlier, it had acquired front-end distribution firm in SriLanka and Yemen. In June, Cipla made its fifth global acquisition deal within a span of a year, with buying 51 per cent stake in a pharmaceuticals manufacturing and distribution business in Yemen for $21 million. On June 17, it had acquired a 60 per cent stake in a Sri Lankan company for $14 million.

Last month, Cipla had signed an agreement with American company Salix Pharmaceuticals, under which Cipla has granted Salix exclusive rights over certain patent applications in the 'Rifaximin Complexes' patents owned by Cipla.