Cipla spikes up on 'Sri Lankan' pill

Cipla is currently the top gainer on the BSE, up over 5.6% at Rs.435.75, with an intra day high at Rs.443.20. Volumes have shot up over 2.4 times. Its 52-week high stands at Rs.450.

The stock is in the limelight, reacting today to the news which it announced yesterday afternoon during market hours. The market is enthused with the news that it has signed a $14 million or around Rs.85 crore deal with a Sri Lankan company.

In the issued Press Release, the company has stated that its wholly owned subsidiary, Cipla (Mauritius) has signed a definitive agreement with the Company’s existing Sri Lankan distributor for acquisition of 60% stake in a new company which will market the Company’s products in Sri Lanka. 

This acquisition is a part of its global expansion plan. A few months ago it had acquired a South African company and then one in Croatia. Through these acquisitions, the company is slowly expanding its global footprint in some of the non-traditional markets.