New Delhi: Homegrown pharma major Cipla Tuesday said it has entered into a pact with Jiangsu Acebright Pharmaceutical Co Ltd to form a joint venture in China. The agreement is between Chinese firm Jiangsu Acebright and Cipla's European arm, Cipla EU for a combined investment of USD 30 million, as per a company statement.
While Cipla EU will hold 80 per cent stake in the joint venture, the rest 20 per cent will be with Acebright, the statement by Cipla said. Once incorporated, the JV will set up a manufacturing facility in China for local manufactures of respiratory products, it added.
"While our core home markets remain our current growth anchors, we see China as a crucial part of our future road map... We are keen to take our well-established expertise in the respiratory segment to patients in China," Cipla MD & Global CEO Umang Vohra said.
Simultaneously, Cipla will explore various routes to build a portfolio of products in other therapeutic segments such as oncology, he added. He further said in May the company had inaugurated its office in Shanghai. "We have a long-standing relationship with Acebright, and this partnership to build a manufacturing facility in China is a significant step for us," Vohra added.
Acebright Group Chairman Shengping Xu said the tie-up strengthens the group's long-standing partnership of more than 20 years with Cipla. "We strongly believe the joint venture will bring more products to Chinese patients in the respiratory segment," Xu said.