Cipla EU and Jiangsu Acebright enter into joint venture
- Post By : Kumar Jeetendra
- Source: MBI
- Date: 16 Jul,2019
Mumbai, India & Jiangsu, China, July 16, 2019: – Cipla (EU) Limited, (“Cipla EU”), a U.K. based wholly-owned subsidiary of the leading global pharmaceutical company Cipla Limited (BSE: 500087; NSE: CIPLA EQ; hereafter referred to as "Cipla") and Jiangsu Acebright Pharmaceutical Co. Ltd. (“Acebright”) announced that they have entered into an agreement to set up a joint venture company (“JV Co”) in the People’s Republic of China (“China”).
According to the agreement, upon incorporation, the JV Co will become a subsidiary of Cipla. Cipla EU will hold an 80% stake and Acebright will hold a 20% stake in it for a combined investment of USD 30mn. Upon incorporation, the JV Co will set up a manufacturing facility for local manufacture of respiratory products.
Shengping Xu, Chairman of Acebright Group, said, “We have a long-standing partnership of more than 20 years with Cipla which shares our vision and approach towards patients. We are pleased to strengthen our relationship with Cipla through this joint venture and strongly believe the joint venture will bring more products to Chinese patients in the respiratory segment.”
Umang Vohra, MD & Global CEO of Cipla, said, “While our core home markets remain our current growth anchors, we see China as a crucial part of our future roadmap. In May, we inaugurated our office in Shanghai. We have a long-standing relationship with Acebright, and this partnership to build a manufacturing facility in China is a significant step for us. We are keen to take our well-established expertise in the respiratory segment to patients in China. Simultaneously, we will explore various routes to build a portfolio of products in other therapeutic segments such as oncology. For over eight decades, Cipla has stood for Caring for Life in India and around the world, and we will continue to work towards meeting unmet patient needs through this venture.”