Free Submission Public Relations &
Deutsch English

CIPLA - Growth to Slow Down, Tough Time Ahead

CIPLA - Growth to Slow Down, Tough Time Ahead - new market research report published

Print article Print article
2014-03-14 09:05:02 - CIPLA - Growth to Slow Down, Tough Time Ahead - a new market research report on

We view Cipla´s bid for 51% stake in Cipla Medpro (CM) at $220m more as a step to salvage its South African business, than as a growth driver. We do not disagree that this deal, valued at 9.4x EV/EBITDA, is EPS accretive and comes at a reasonable valuation.

However, given that CM was left in lurch post the controversial exit of its CEO (Jerome Smith), Cipla is almost compelled to buy a controlling stake. In such a situation, a demand for higher price from Cipla Medpro´s current share holders may not be ruled out as the bid is being reviewed. CM trading at a discount to peers like Aspen and Adcock (largely due to concerns of supply agreement with Cipla post



Jerome´s exit), is a boon for Cipla.

With Cipla generating 9% of sales from supply to CM and CM owing all the brands in South Africa, this acquisition also highlights Cipla´s weak business model with little focus on front end. Jerome´s re-instatement as CEO post Cipla´s acquisition cannot be ruled out given his strong relationship with Cipla management.

We reiterate our Market Perform on Cipla with a target price of Rs.360

Click for report details: ..

Browse all Healthcare and Medical Market Research Reports ..

Browse all Healthcare and Medical Company Profile Reports ..

Browse all Latest Market Research Reports ..

About Us is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles,’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.

Mike King
Phone: London: +44 (0) 203 086 8600

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact