Cipla Deepens Strategic Partnership with Achira Labs For an Investment of ₹26 Crore

Cipla Limited, a leading pharmaceutical player in India, announced a significant investment in its associate company, Achira Labs Private Limited. This strategic move underscores Cipla’s commitment to advancing Point-of-Care (PoC) diagnostic solutions in India.

Strengthening the Partnership for Broader PoC Diagnostics Focus

On May 15, 2024, Cipla entered into definitive agreements to invest up to ₹26 crore (approximately USD 3.2 million) in Achira Labs. This follow-on investment signifies a deepening of the partnership between the two companies. The additional funds will empower Achira to develop further and manufacture microfluidics-based PoC immunoassay and molecular assay technologies.

These technologies hold immense potential in revolutionising diagnostic testing by enabling accurate and rapid results at the point of care, particularly in resource-limited settings. By collaborating with Achira, Cipla aims to bolster its presence in the burgeoning PoC diagnostics market and contribute to improved access to essential diagnostic solutions across India.

Investment Details and Timeframe

The investment will be made in four tranches, contingent upon successfully completing pre-defined milestones outlined in the definitive agreements. The closing of the first tranche, valued at ₹6 crore (approximately USD 0.74 million), is anticipated within 25 days of signing or on a mutually agreed-upon date. This initial investment will grant Cipla 60,00,000 Optionally Convertible Preference Shares in Achira, translating to an additional 7.89% voting rights. Upon completing the first tranche, Cipla’s total voting rights in Achira will reach 27.27%.

About Achira Labs

Established as an associate company of Cipla Limited, Achira Labs is a pioneering force in the development and commercialization of innovative PoC medical testing technologies. Their focus on creating accessible and efficient diagnostic solutions aligns perfectly with Cipla’s vision of improving healthcare delivery in India. This strategic partnership between Cipla and Achira Labs positions them as key players in shaping the future of PoC diagnostics in India and beyond.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.