Cipla sets up new plant in Morocco
pharmafile | February 17, 2015 | News story | Manufacturing and Production, Sales and Marketing | Cooper Pharma, PHI, PHI), Societe Marocaine De Cooperation Pharmaceutique, The Pharmaceutical Institute, cipla. morocco
Indian firm Cipla’s UK subsidiary has entered into a joint venture to establish a stronger presence in Morocco, as it sets its sights on expansion into the Middle East and North African markets.
The agreement, in which Cipla is investing $15 million, will see the firm working with its two existing business partners in the country – Societe Marocaine De Cooperation Pharmaceutique (Cooper Pharma) and The Pharmaceutical Institute (PHI).
Cipla has had a strong presence in Morocco for over a decade via these partners, but the company says that this new venture will enable it to establish a more direct presence in the country’s pharmaceutical market that will become “the launch vehicle for Cipla’s portfolio while leveraging the commercial strengths of partners”.
“Morocco is an attractive pharmaceutical market in the African continent,” adds Subhanu Saxena, the global chief executive of Cipla. “This joint venture 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 venture will further strengthen Cipla’s relationship.”
The joint venture will initially focus on respiratory and neurology products and setting up a manufacturing facility in the country. Under the terms of the agreement, Cipla EU will have a 60% stake in the joint venture while Cooper Pharma and PHI will together hold a 40% stake.
This is not the first time the Indian company has bolstered its activities in the Middle East and North Africa (MENA) market. Last year it bought a 51% stake in a manufacturing and distribution business in Yemen, which was followed by a deal to establish a manufacturing facility in Iran.
It is not the only pharma firm eyeing Morocco either, in 2013 Sanofi opened a logistics hub in the country to help it increase and accelerate distribution throughout the African region.
George Underwood
