INDIA – Cipla, an Indian drug major announced that it has signed definitive agreements for acquiring 21.05% stake (on a fully diluted basis) in Bengaluru-based Achira Labs for a cash consideration of Rs 25 crore (US$3.2 million).
According to a statement, Achira Labs is an ISO 13485 compliant company engaged in development and commercialization of point of care (PoC) medical test kits in India.
It develops medical diagnostic products using microfluidic technology. Achira aims to bring sophisticated medical tests closer to the point of diagnosis, treatment and management through its innovative solutions and cutting-edge research, by leveraging its capabilities, strong collaborations, and deep expertise.
A PoC that enables rapid identification of the bug causing an infection would be extremely helpful in choosing the appropriate antibiotic early in the treatment process.
Cipla said that investment will enable it to enter into the business domain of designing, developing and manufacturing microfluidics-based PoC immunoassay and molecular assay technologies. Post-acquisition, Achira will become an associate of Cipla.
A PoC that enables rapid identification of the bug causing an infection would be extremely helpful in choosing the appropriate antibiotic early in the treatment process.
Achira is developing PoC immunoassays and molecular assays across the clinical areas of infectious diseases, AMR and hormone analysis among others.
Commenting on the development, Achin Gupta, CEO, One India Business, Cipla said, “This investment will further our commitment of bringing innovative, affordable and quality diagnostic solutions for all. We are guided by our purpose of caring for life and will continue to make strategic investments to ensure access to point of care test kit solutions.”
Cipla said the transaction is expected to be completed within 60 days from “the signing of definitive agreements or such other date mutually agreed between the parties and will be subject to conditions precedent set out in the definitive agreements.”
Earlier on, Cipla entered into share subscription & shareholder’s agreement (SSHA) along with a power purchase agreement to acquire up to 32.49% stake for a total cash consideration of Rs 7.50 crore (US$0.96 million) on a fully diluted basis in AMP Energy Green Eleven for setting up captive solar power project in Maharashtra.
The transaction will increase the share of renewable power sources in its operations and to comply with regulatory requirements for being a captive user under Indian electricity laws.
Following the acquisition, AMP Energy Green Eleven will become a Cipla associate. AMP Energy Green Eleven is a Special Purpose Vehicle (SPV) formed for the purpose of establishing captive solar power projects in Maharashtra. It is currently a wholly owned subsidiary of AMP Energy C&I.
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