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Cipla looking for biotech cos in Europe, China

P. T. Jyothi Datta

Q1 profit up 53 per cent

Mumbai , July 21

Drug-maker Cipla is looking at acquisition opportunities in the biotech segment in Europe and China. The Mumbai-based company at present sits on a kitty of $170 million (Rs 762 crore), raised recently through GDRs.

Cipla is looking at biotech manufacturing opportunities in Europe and China, Cipla's Joint Managing Director, Mr Amar Lulla, told Business Line. At present, Cipla is doing its due diligence and a decision could be expected in another three months, he added.

Capacity expansion

The company is also undertaking a Rs 600-crore capacity-expansion over a two-year period, he said. Cipla's facilities at Patalganga have already been upgraded, he said. New facilities are being planned in Pune and Goa, he added.

Net rises 53 pc

Meanwhile, Cipla has posted 53 per cent growth in net-profit for first quarter ended June 30. The company has posted a net-profit of Rs 170.43 crore for the quarter under review, as compared to Rs 111.40 crore in the corresponding quarter last year. Total income (net of excise) has increased from Rs 671.17 crore in Q1 FY 05-06 to Rs 885.53 crore in Q1 FY 06-07, Cipla told the BSE.

Balanced growth

The healthy growth was on the back of balanced growth in the domestic and export markets and across all product categories, Mr Lulla said. Exports grew by 38 per cent and domestic sales grew by 20 per cent, he said. "There are pricing pressures on margins, which is why operations have to be that much more efficient," he pointed out. He expected the company to grow at 15 to 18 per cent in the forthcoming quarter.

The company also said that its Board had recommended payment of dividend of Rs 2 per equity share (face value Rs 2) on equity shares (including shares underlying GDRs and bonus shares) for the year 2005-2006.

Cipla shares were marginally up at Rs 220.15 on the BSE.

More Stories on : Overseas Investments | Pharmaceuticals | Mergers & Acquisitions | Cipla Ltd

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