Shares of Cipla were trading in the green on 7 November after the Board of Directors of the company approved the sale of its generic business to Cipla Pharma and Life Sciences Limited, a wholly-owned subsidiary, on a slump sale basis for Rs 350 crore.
When considered separately, the generics business contributes 9.95% of Cipla’s overall revenue and around 1% of its net worth on a standalone basis.
In its regulatory filing, the company said that the effective date for the transfer and completion of its generic business to Cipla Pharma and Life Sciences Limited would be at the end of business hours on 31 December 2023 or any other date that is mutually decided between both the parties.
The company said, “The generic market is expected to grow quickly, and the company is one of the largest players in the generics business.
In its quarterly report for the July-September quarter, the company reported a 43.3% year-on-year (YoY) jump in its net profit to Rs 1,131 crore from the year-ago quarter.
The revenue of the company saw a 14.6% YoY increase to Rs 6,678 crore during the quarter from Rs 5,828.5 crore reported in the same quarter during the previous fiscal year.
The company’s EBITDA (earnings before interest, tax, depreciation, and amortisation) saw a 33.1% YoY increase to Rs 1,734 crore. The EBITDA margins expanded by 380 basis points to 26% from 22.2% reported in Q2FY23.
The USFDA granted a no-objection certificate to Cipla’s wholly-owned subsidiary InvaGen Pharmaceuticals, situated in New York, during its normal current Good Manufacturing Practices inspection last month.
At 12:30 pm, the shares of Cipla were trading 0.85% higher at Rs 1,214.35 on NSE.