Cipla signs agreement for acquisition of 21.05% stake in Achira Labs to develop affordable, innovative medical kits in India

Cipla Limited (BSE: 500087; NSE: CIPLA EQ; and hereafter referred to as "Cipla") announced today that it has signed definitive agreements for acquisition of 21.05% stake (on a fully diluted basis) for an amount of INR 25 crores (approx.) in Achira Labs Private Limited (hereafter referred to as "Achira") engaged in development and commercialization of point of care (PoC) medical test kits in India.

This investment will facilitate a Cipla entity's strategic participation in the Poe diagnostics and AMR space through the design, development, and manufacturing of microfluidicsbased technologies. A Poe 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, anti-microbial resistance (AMR) and hormone analysis among others.

Commenting on the development, Mr. 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.

Achira is an ISO 13485 compliant 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 through its innovative solutions and cutting-edge research, by leveraging its state-of-the-art capabilities, strong collaborations, and deep expertise.

Shares of Cipla Limited was last trading in BSE at Rs. 915.60 as compared to the previous close of Rs. 940.60. The total number of shares traded during the day was 61799 in over 4300 trades.

The stock hit an intraday high of Rs. 944.95 and intraday low of 911.05. The net turnover during the day was Rs. 57137839.00.

Source : Equity Bulls

Keywords

Cipla INE059A01026 StakeAcquisition AchiraLabs MedicalTestKits