Cipla to launch South Africa's first biotech production plant

Indian drug major Cipla (BSE: 500087) this week said it is planning to invest 1.3 billion rupees ($19.3 million) into South Africa's first state-of-the-art biotech manufacturing facility through its biotech subsidiary for the production of biosimilars.

A memorandum of understanding (MoU) between Cipla BioTec Pvt and Dube Tradeport Corp will be signed. The MoU affirms Cipla BioTec’s and Dube Tradeport Corporation’s commitment for the investment and outlines terms of reference for the project. Construction is scheduled to start in early 2017, with full operations expected to commence in the third quarter of 2018.

Cipla is an owner of Cipla Medpro, South Africa’s third largest pharmaceutical manufacturer, as well as Cipla BioTec, a biotechnology company focused on affordable and accessible biopharmaceuticals.

Biosimilars remain too expensive for broad use outside of major western markets

Steven Lehrer, director of Cipla BioTec, said that “biosimilars are important to enable access to advanced cancer and autoimmune treatments. These treatments are only used by about 8% of patients who should be treated worldwide mainly due to the high costs of these drugs. Biosimilars are as safe and effective as the original treatment and are starting to be introduced worldwide. However, biosimilars remain too expensive for broad use outside of major western markets. Cipla BioTec aspires to transform the biosimilars market worldwide, by significantly increasing access with its strategy of one global product standard at affordable pricing. Cipla BioTec’s unique manufacturing strategy is leveraged from its in house proprietary manufacturing software and single use technology.”