The Indian pharma company, Cipla has proclaimed to create a joint venture with China-based company, Jiangsu Acebright Pharmaceutical Co. Ltd so as to enter into the Asian nation, according to a media report.
As per the concord, Cipla will invest around INR 164 crore in the joint venture for 4 years, said the company in its BSE filing, as reported by the daily news, VC Circle.
According to the cited reports, Cipla will hold 80 per cent stake in the JV and Acebright the rest.
The JV will be essentially performing selling, distribution and manufacturing of pharmaceutical products. Further, the company will be engaged in development and research and analytical development services with an idea of rendering affordable medical drugs.
The transaction is subject to regulatory approvals, Cipla told the daily news.
In 2014, the Indian pharma company sold its shares in Jiangsu Cdymax Pharmaceuticals for $18.5 million. Following this, the company depossesses its 25 per cent stake in Biomab Holding Ltd. to Biomab Brillant Ltd for INR168 crore.