11 Feb 2013, BioSpectrum Bureau , BioSpectrum
Mumbai: Indian drugmaker Cipla has postponed its plans to acquire majority stakes in South African firm Medpro on account of high valuations. Cipla had decided to acquire 51 percent stake in Medpro during November last year for $220 million.
Medpro, which is the thrird-largest South African pharma firm in the $3 billion African drug market, bought all its bulk drugs from Cipla. Interestingly, since the time of the announcement of the deal, Medpro won large government contracts that prompted its board to seek a better valuation from Cipla.
Cipla had been trying to expand its international operations over the past year and was trying to crack the prescription drug market in South Africa through Medpro products, which had a portfolio of central nervous system and respiratory drugs.