Cipla to acquire 21% stake in Achira Labs for Rs 25 cr

The pharmaceutical company on Friday announced that it has signed definitive agreements to acquire 21.05% stake (on a fully diluted basis) in Achira Labs for a cash consideration of Rs 25 crores.

June 18, 2022 3:02 IST | capital market
Cipla said that it will acquire 21.05% stake (on a fully diluted basis) for Rs 25 crores in Achira Labs, which is engaged in development and commercialization of point of care (PoC) medical test kits in India. The pharma major said that this investment will facilitate a Cipla entitys strategic participation in the PoC diagnostics and anti-microbial resistance (AMR) space through the design, development, and manufacturing of microfluidics-based technologies. A PoC that enables rapid identification of the bug causing an infection would be extremely helpful in choosing the appropriate antibiotic early in the treatment process. Achira is developing PoC immunoassays and molecular assays across the clinical areas of infectious diseases, AMR and hormone analysis among others. Commenting on the development, Achin Gupta, CEO, One India Business, Cipla said, This investment will further our commitment of bringing innovative, affordable and quality diagnostic solutions for all. We are guided by our purpose of caring for life and will continue to make strategic investments to ensure access to point of care test kit solutions. The transaction is expected to be complete within 60 days from the signing of definitive agreements or such other date mutually agreed between the parties and will be subject to conditions precedent set out in the definitive agreements, the company stated. Achira is a medical diagnostics company incorporated in Bengaluru, India, that develops medical diagnostic products using microfluidic technology. Achira aims to bring sophisticated medical tests closer to the point of diagnosis, treatment and management. Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets. The pharma companys consolidated net profit fell 12.4% to Rs 362 crore on 14.2% increase in total revenue from operations to Rs 5,260 crore in Q4 March 2022 over Q4 March 2021. Shares of Cipla fell 2.66% to settle at Rs 915.60 on Friday, 17 June 2022. Powered by Capital Market - Live News

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