Cipla enters joint venture in Morocco and eyes Serum Institute of India merger

Indian pharma company Cipla (BSE: 500087) says that its UK subsidiary has entered into a joint venture agreement with the company’s existing business partners in Morocco – Société Marocaine De Coopération Pharmaceutique and The Pharmaceutical Institute.

The joint venture will allow Cipla to establish a presence in Morocco’s pharma market, and will become the launch vehicle for the company’s portfolio. It will initially focus on respiratory and neurology products, and the company will set up a manufacturing facility in the country. Cipla will hold a 60% stake in the venture, while the other two companies will together hold 40%. Cipla’s expected investment is $15 million.

Subhanu Saxena, chief executive of Cipla, said: “Morocco is an attractive pharmaceutical market in the African continent. This JV is aimed to strengthen Cipla’s presence in Morocco, which is in-line with our global growth strategy to build front-end presence in key markets. Cipla has enjoyed a long-standing business relationship with Cooper Pharma and PHI for over a decade and this JV will further strengthen Cipla’s relationship.”