Cipla gains on partner's contract win

Last Updated: Fri, Nov 30, 2012 06:36 hrs

Shares in drugmaker Cipla rise 1.4 percent after Cipla Medpro won a share in South Africa's $667 million contract, as it supplies the bulk of Cipla Medpro's drugs.

Dealers say the company may garner revenues of $30-40 million from Cipla Medpro's contract.

South Africa on Thursday awarded a $667 million contract to supply life-prolonging HIV medicine to 12 international and domestic firms, including Cipla Medpro, to deal with its biggest health problem.

Cipla also plans to offer $215 million for a majority stake in South Africa's Cipla Medpro to strengthen its presence in Africa's fast-growing market for cheap, generic versions of branded drugs.

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