Cipla arm forms JV with Ahran Tejarat for manufacturing drugs in Iran

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Mumbai: Cipla Ltd’s wholly-owned subsidiary in the Netherlands, Cipla Holding B.V., has entered into a joint venture agreement with Ahran Tejarat Co. for manufacturing and marketing pharmaceutical products in Iran.

As per the agreement, Cipla will initially acquire 75% stake in Iranian firm Issat Co., which is currently owned by Ahran Tejarat, for a cash consideration of €1.35 million and infuse up to €15.525 million into the joint venture (JV) as equity over the next one year, Cipla said in a stock exchange filing on Thursday. Ahran Tejarat will hold 25% in the JV.

The Indian pharmaceutical major expects to complete the transaction by March 2017 subject to requisite regulatory approvals.

“Issat Co. has a valid pharmaceutical manufacturing licence in Iran and also owns certain fixed asset but has not undertaken any business activity since incorporation (in January 1998) and as a result, does not currently have any turnover,” Cipla said.

In the Middle East, Cipla has a presence in the United Arab Emirates, Yemen and Turkey through wholly-owned, majority-owned and step-down subsidiaries.

Shares of Cipla were down 0.41% at Rs566.10 on the BSE, while Sensex was up 0.23% at 26663.31 points.