India-based pharmaceutical company Cipla Ltd. is strengthening its presence in Africa. The company's wholly owned subsidiary, Cipla (EU) Limited, U.K., has entered into a joint venture agreement with Societe Marocaine De Cooperation Pharmaceutique (known as "Cooper Pharma") and The Pharmaceutical Institute (PHI).
Both firms are existing business partners of Cipla in the Moroccan market, where the company has had a presence for over a decade.
Cipla (EU) Limited expects to invest up to $15 million in the joint venture and will be the majority partner, holding a 60% stake. Cooper Pharma and PHI will together hold the remaining 40% stake in the business.
According to Cipla, this joint venture will enable the company to establish a front-end presence in Morocco's pharmaceutical market. The jointly-owned business will become the launch vehicle for Cipla's portfolio while leveraging the commercial strengths of its partners.
Initially, the joint venture will focus on respiratory and neurology products and it will establish a manufacturing facility in Morocco.
Commenting on the agreement, Subhanu Saxena, global CEO of Cipla, said that Morocco is an attractive pharmaceutical market in the African continent.
"This JV is aimed to strengthen Cipla's presence in Morocco, which is in-line with our global growth strategy to build front-end presence in key markets."
Cipla has enjoyed a long-standing business relationship with Cooper Pharma and PHI for over a decade and this joint venture will further strengthen the company's relationship, he added.
The deal remains subject to regulatory clearance and other conditions.