Cipla Inks $21 Million Deal To Buy 51% Stake In Yemen-based distributor

India’s second largest generic drugmaker Cipla Ltd has signed a definitive agreement to acquire a 51% stake in a pharmaceuticals manufacturing and distribution business in Yemen (owned by a UAE-based parent company) for $21 million (Over Rs 125 crore).

After acquiring 60% stake in a Sri Lanka-based company for $14 million, this is the second buyout of Cipla this month.

According to Cipla, buyout in Yemen will secure the company's presence in a fast growing market, where it already has a leading position with over 200 products. The deal includes additional considerations to be paid over the next three years on achievement of agreed milestones.

At noon today (June 30), the company’s stock stood at Rs 422, up by 1.07% on BSE (Bombay Stock Exchange).

Last year, it completed the buyout of South African pharma firm Cipla Medpro for Rs 2,707 crore. Also in December 2013, it had acquired Croatia-based firm Celeris, distributor of its products in that country.