Leading global pharmaceutical company Cipla Ltd approved an investment of $100 million in its wholly owned subsidiary Cipla (EU) and amalgamation of Inzpera Healthsciences Ltd with itself.
In a regulatory filing, Cipla said that the investment of $100 million in Cipla (EU) will be utilised for onward financial assistance to InvaGen Pharmaceuticals Inc. towards capital expenditure, working capital requirements and general corporate purposes.
Cipla (EU), based in the U.K., serves as the holding company for the group’s operations across Europe and emerging markets, while InvaGen is its wholly owned subsidiary.
Separately, Cipla said it has approved the amalgamation of Inzpera Healthsciences, a wholly owned subsidiary, with itself, subject to statutory approvals, including that of the National Company Law Tribunal, Mumbai.
The proposed amalgamation would not have any material impact on the financials of the company and does not include any consideration, it said.
Cipla is engaged in the manufacture, sale and trading of pharmaceutical products, whereas Inzpera focuses on the marketing and distribution of differentiated paediatric formulations.
The pediatric pharmaceutical portfolio of Inzpera is strategically aligned with Cipla’s business. The amalgamation will enable Cipla to leverage its marketing and distribution strengths, streamline and simplify the group structure, reduce costs and duplication of administrative efforts and achieve operational and managerial efficiencies, Cipla said.
Following the amalgamation, all shares issued by Inzpera will stand cancelled, with no change in Cipla’s shareholding pattern.