Cipla will be investing 100 million pounds (around R1,028 crore) in its UK subsidiary over the next few years in a bid to further strengthen its international business, the company said in a statement on Monday.
“The company, in collaboration with the UK government, has expressed its intention to make investments of up to £100 million in its UK subsidiary over the next few years,” Cipla said in a filing with the bourses.
“The investments are expected to facilitate the launch of a range of products in the area of respiratory, oncology and antiretroviral medicines to further Cipla’s higher purpose of universal affordable access.”
Stating that the investment underscored the importance of the UK market in Cipla’s long-term strategy, it added that the pharmaceutical company planned to utilise a part of this investment towards research and development, clinical trials, and expand further internationally as well.
The announcement of its intention to invest further in the UK comes close on the heels of two international transactions closed by Cipla whereby it invested in pharmaceutical distribution companies.
In June, Cipla signed a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen for an initial consideration of $21 million, with additional investment to be made over the next three years on the achievement of certain milestones. In the same month the company announced that it was acquiring a 60% stake in a Sri Lankan pharmaceutical distribution company for $14 million.
Cipla had also announced on June 17 that it will acquire a 60% stake for $14 million in its Sri Lanka-based distributor which will market Cipla’s products in the island country.
The drugmaker currently generates 60% of its consolidated revenues of R10,100 crore from international markets, with Europe contributing 6% to overall sales in fiscal 2014.
In its quarterly conference call with investors held in May, Cipla said that it will focusing on respiratory drug launches in Europe with a new inhaler likely to be launched in “two or three bigger markets in Western European markets” in the second half of fiscal 2015.