Cipla announced at its Annual General Meeting that it will invest US$200 million (Rs 1,000 crore) in the immediate and near future in factories, expansion of existing facilities and infrastructure, planning to invest in biotechnology in both India and China.

Cipla Chairman and Managing Director, Dr Hamied, added that “we believe this activity is also humanitarian and like our crusade on the HIV/AIDS front, we will attempt to make a similar contribution in the sophisticated cancer market, reaching one and all cancer patients with valuable drugs at affordable prices”.

Cipla only recently entered the biosimilars market with the US$65 million (Rs 325 crore) acquisition of a 40% stake in Goa-based Mab Pharm and a 25% stake in Bio Mabs, Shanghai, earlier this year.

A factory to produce biosimilars is in the process of completion in Goa, and the company expects to launch its first biosimilar products in early 2012.

Despite being so new to the industry, Cipla is committed to gaining a major share in the rapidly expanding biosimilars market, with another deal to invest about US$10.8 million (Rs 50 crore) in Stempeutics Research to gain access to stem cell-based therapies also agreed.

Cipla meanwhile continues to expand its generics portfolio, with the announcement that its board of directors has approved the planned purchase of fellow Indian drug manufacturer Meditab Specialities for US$28 million (Rs 140 crore). In a statement the company said that “the acquisition of Meditab will help the company consolidate its business in various countries including China and Africa”.

Related article

Cipla enters the biosimilars market

References

Business Standard. Cipla to invest Rs 1,000 cr in near future, to acquire Meditab Specialities. 26 August 2010.

Stempeutics News & Events. Cipla and Stempeutics.