Durgmaker Cipla on Tuesday announced that its South African subsidiary has won order worth 2 billion rand (nearly Rs 1,100 crore) for its anti-Aids drugs from the South African government.
The company in its filing on BSE said its subsidiary Cipla Medpro has bagged the government tender for a period of three years.
"Cipla Medpro, the third largest pharmaceutical company in South Africa, has been awarded 2 billion rand share of the South African Government's 2015-17 National anti-retroviral (ARV) tender," it said. The contract is effective from the April 1 and will run for a period of three years.
This is the third government tender win for Cipla Medpro in the last one year. The company had earlier won national respiratory tender worth 345 million rand in June this year, followed by state therapeutic drug tender worth 280 million rand in August 2014.
"We are extremely proud to have won this tender which is not only testament to our high quality product portfolio, but is also in line with Cipla's ethos of advancing healthcare for all South Africans. We look forward to continuing this partnership with government - united in the fight against Aids," said Subhanu Saxena, MD & global CEO, Cipla Limited.
The medication will be produced at its manufacturing site based in Kwazulu-Natal.
According to a Bloomberg report, South Africa has the world's biggest antiretroviral treatment program, offering medication to more than 2.2 million people. Use of the regimen has almost doubled since 2008 to cover about one-third of the 6.4 million people in the country who are infected with HIV, according to the Human Sciences Research Council. The government has a target of halving the number of new infections by 2016.
The Mumbai-based company completed acquisition of Cipla Medpro in July last year for a total consideration of Rs 2,707 crore.
Sarabjit Kour Nangra, VP research - pharma, Angel Broking, said, "Cumulatively the company has orders worth of Rs 1440 crore. The fiscal year 2016 would be full year of the commercialisation of the recent order and hence, we increase our 2015-16 estimates. For 2015-16, we revise our sales and EPS, up by 3.5% and 11.1%, respectively."
Shares of Cipla on Tuesday closed at Rs 629.65 apiece on BSE, up 1.82% the previous close.
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