Cipla announces reentry into Chinese market with Jiangsu Acebright

The global pharmaceutical giant Cipla reportedly announced that it has reentered Chinese market in an alliance with Jiangsu Acebright. The company will set up a manufacturing plant for respiratory products in China under the joint venture.

According to reliable sources, both the companies will invest nearly $30 million for the joint venture mutually. Cipla EU, a wholly owned subsidiary of Cipla, will hold an 80 percent share and Acebright will hold a 20 percent share. Even though Cipla will start off with respiratory products in China, it has plans to expand to other segments in the future.  

Umang Vohra, MD & Global CEO, Cipla, reportedly stated that the company is keen to take its well-established knowhow in the respiratory sector to patients in China. Concurrently, the company will explore several means to build a portfolio of products in other therapeutic segments like oncology. Also, it will consider China as an important part of its future roadmap, he further added.

Shengping Xu, Chairman, Acebright Group, reportedly stated that the company has an established partnership of over 20 years with Cipla which shares its vision and approach towards patients.

Apparently, this is not the first time Cipla has entered the Chinese market. In 2012, the pharma major held stakes in three different Chinese companies, 48.2% in Jiangsu-based Cdymax, 16.6% in Shanghai Desano Pharmaceuticals and 25% in Biomab.

Reportedly, Cipla later rejigged its investments letting go of the stake in Cdymax and Biomab. It had sold its stake in Jiangsu-based Cdymax in 2014 for $18.5 million. The share in Hong Kong-based Biomab was sold in 2015 to British Virgin Islands-based Biomab Brilliant for $25.8 million.

Cipla share price has gained 0.54% or 3 points to 553.75 level in afternoon trade on BSE after the announcement. It has recently closed at 550.75 level in trade.

Source credit:

https://www.businesstoday.in/sectors/pharma/cipla-china-joint-venture-jiangsu-acebright/story/364719.html

https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/cipla-forms-jv-with-jiangsu-acebright-for-respiratory-medicines-in-china/articleshow/70242041.cms?from=mdr