Cipla in talks for supply of drugs to Pfizer: Reports

08 May 2010

Drugs maker Cipla is in talks with global pharmaceutical giant Pfizer to make and supply drugs for the US-based company, which is planning a foray in the generics business, the Economic Times newspaper reported quoting an unidentified person in the know of the matter. If the deal were to materialise Cipla would make inhalers, drugs for respiratory disorders and anti-infectives for Pfizer. The company currently is in talks for around 18 products the person said.

The two-part deal would involve a licensing fee of around $150 million for the largest drug maker in India by sales and then profit from sale of the products.

Meanwhile, on Friday Cipla said its net profit was up 8.9 per cent to Rs275.5 crore for the fourth quarter ended 31March, 2010 as compared with Rs1,235.2 crore in the same period last fiscal.

Net sales of the company surged to Rs1,317.49 crore for the quarter ended 31 March  2010, as against Rs1,235.17 crore in the same period last fiscal, according to the company's statement.

The company also said the proposal for the acquisition of two manufacturing facilities in Sikkim and Kurukumbh in Pune had been approved by its board during its meeting yesterday. The acquisition will involve an outlay of Rs82.02 crore.

Cipla will acquire the Sikkim facility for Rs51.38 crore and the Pune plant for Rs30.64 crore. Both facilities had so far been manufacturing drugs exclusively for Cipla, the company said.