Pharma giant Cipla snapped a 2-day losing streak

Pharmaceutical giant Cipla snapped a 2-day losing streak after it reported having purchased the marketing rights of several skin care products of a smaller rival in a deal estimated at a modest 90 crore rupees.

Cipla has acquired exclusive marketing rights for skin care products of Percos India. The pact would lead to products being manufactured by Percos India for first five years, after which the rights would be transferred to Cipla.

Cipla would start marketing and distribution of the products post completion of formalities related to closure of agreement.

Percos’ products are mainly focused at skin rejuvenation segment. The combined sales of its brands like Vedaderm, Claz, Actipeel, Tryses and Glycoveda are around 10 crore rupees.

Cipla rose 7.20 rupees, or 1.1 percent, to 659.45 rupees on the National Stock Exchange, where 9.5 lakh shares were traded compared with a 5-day average of 27 lakh shares. The deal was announced at a time when the stock trades just around its 200-DMA, a key support level.

Cipla's market capitalisation has risen 19 percent in the past one year to 52,700 crore rupees. The stock trades at 4.6 times its book value of 142 rupees.

Image credit: Indiatimes