Cipla gets a front-end in Morocco via joint venture

Indian drug-maker Cipla Ltd has signed a joint venture agreement with its business partners in Morocco — Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI) — which would give the company a front-end presence in the North African country.

Cipla (EU) Ltd, a wholly-owned subsidiary of the Mumbai-based company, is expected to invest $15 million (about Rs. 90 crore) in the joint venture, where it is the majority partner.

Launch vehicle

The initial focus of the venture would be respiratory and neurology products and the company would also set up a plant in Morocco, Cipla said in a statement.

Cipla has a strong presence in Morocco for over a decade through its business partners. And the joint venture will become the launch vehicle for Cipla’s products while leveraging the commercial strengths of its partners, the note added.

According to the agreement, Cipla (EU) will hold a 60 per cent stake in the joint venture while Cooper Pharma and PHI would together hold the rest.

Subhanu Saxena, Cipla’s Managing Director and Global Chief Executive, said Morocco is an attractive pharmaceutical market in the African continent.

“This JV is aimed to strengthen Cipla’s presence in Morocco, which is in line with our global growth strategy to build a front-end presence in key markets.”

Cooper Pharma and PHI are leading pharmaceutical companies in the region engaged in manufacturing, import, promotion and distribution activities.