Cipla gives wings to its expansion plans, Enters into JV in Morocco

Drug maker Cipla Ltd’s wholly-owned subsidiary, Cipla EU, which is based out of UK, has entered into a joint venture with its existing Morocco based trade partners, Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI). The company through the partnership is expected to focus on marketing respiratory and neurology products in Morocco’s market.

“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 front-end presence in key markets. Cipla has enjoyed a long-standing business relationship with Cooper Pharma and PHI for over a decade and this JV will further strengthen Cipla’s relationship,” said Subhanu Saxena, managing director and global CEO of Cipla Limited.

It is worth noting that the tie-up will facilitate Cipla to gain a direct share of the pharmaceutical market in Morocco by leveraging the commercial strengths of its partners. The company also plans to set up a manufacturing unit in the country.

“As per the agreement, Cipla (EU) Limited will hold 60% stake in the JV, while Cooper Pharma and PHI shall together hold 40% stake. Cipla (EU) Limited’s expected investment in cash in the JV is
estimated at up to USD 15 million,” added Saxena.

It should be noted that the proposed joint venture is subjected to regulatory approvals.