Cipla to sell entire stake in China’s Jiangsu Cdymax through Meditab

Cipla to sell entire stake in China’s Jiangsu Cdymax through Meditab

Drugmaker Cipla is set to sell its entire stake in China’s Jiangsu Cdymax Pharmaceuticals to an affiliate of one of the other shareholders of Jiangsu, for a consideration of $18.5 million (about ₹112 crore).

Through its wholly-owned subsidiary Meditab Holdings Ltd (Mauritius), Cipla has entered into a definitive agreement to sell its entire 48.22 per cent in Jiangsu Cdymax Pharmaceuticals, Cipla told the stock exchange.

Formulation opportunities

Cipla did not see a strategic fit for its investment in Cdymax, given its new global strategy and, as a result, it decided to divest the stake at a value of $18.5mn, which was the initial value of its investment in the entity, a spokesperson told BusinessLine.

Commercialisation

The transaction is subject to regulatory approvals.

In 2012, Cipla invested in Cdymax, A company based out of Jiangsu and predominantly involved in making active pharmaceutical ingredients (API), with about 20 per cent revenues coming from finished medicines. Cipla had invested in the company to pursue formulation opportunities in China.

Outlining its present operations in China, Cipla said: “We are currently commercialising products for Hepatitis B and HIV/AIDS through local partners and selling APIs to several companies in China. Cipla’s products in the respiratory and oncology therapy areas are currently in the pipeline and under registration at SFDA (Chinese FDA).”

Besides this, Cipla has an investment in BioMab, which focuses on developing biosimilars for the Chinese market and other markets across the globe.

“We also procure some APIs and intermediates from several companies in China to service our formulation manufacturing,” it added.