Cipla may be close to global supply pact with Pfizer

MUMBAI: Domestic major Cipla is close to finalizing a global supply agreement with a drug multinational, possibly Pfizer, for a host of generic products, including anti-asthma inhalers and respiratory medicines.
Though the deal size is still being worked out, sources say it may translate into potential payments of around $400 million for the generic major.
The valuation will depend on factors like the number of products out-licenced and the markets serviced globally.
Through the supply agreement, the drug multinational will gain access to an entire range of Cipla products, including inhalers , respiratory and anti-infectives , and expand its portfolio . While the domestic major will be able to supply its products globally to markets in which it had no marketing capability, and thus earn significant revenues.
A Cipla top executive termed the news “speculative’ , saying that he will not confirm or deny it. A Pfizer India official said, “We do not comment on rumours and speculation.”
Recently, Cipla CMD YK Hamied had said that the company is examining all possibilities of expanding its overall business in the emerging markets.
The buzz about Cipla entering into a big out-licensing deal with a drug MNC like Pfizer has been doing the rounds for a few months now. Pfizer is keen to access some of Cipla products like respiratory drugs.