Cipla sells animal health business for ~190 crore

Drugmaker Cipla sold its animal health business in South Africa to Ascendis Health for around ~190 crore as part of its strategy to streamline business and focus on core therapies.

Cipla’s animal health portfolio covers India and Africa. And contributes less than a per cent to the company’s consolidated revenue.

The drug manufacturer said it has signed an agreement to divest its 100 per cent stake in two South African entities — Cipla Agrimed and Cipla Vet. The total consideration of the transaction would be 375 million South African rand (~190 crore) with a potential revision linked to the performance in FY17 (within the price band of 250 million rand and 500 million rand).

Cipla’s animal health division operates mainly in the farm animal segment and its main products include antimicrobials, endectocides, proton pump inhibitors, nonsteroidal anti-inflammatory drugs and supplements.

In a statement, Paul Miller, chief executive officer, Cipla South Africa said the company will increase its focus and efforts to advancing health care for all South Africans and will grow its portfolio of quality, affordable products and therapies.

The sale of the animal health business is in line with the company’s strategy to exit from the non-core businesses and focus on key areas such as the respiratory segment.

Its key markets include India, South Africa and the US.

Last year, it exited from several markets to reduce costs and complexities and sold its stake in clinical stage biopharmaceutical company Chase Pharmaceuticals to Allergan.