In May 2019, Cipla Limited (“Cipla”), an Indian pharmaceutical giant, through its European subsidiary has set up Cipla (China) Pharmaceutical Co., Ltd., a wholly foreign-owned enterprise with the registered capital of USD 8 million in Shanghai Free Trade Zone. This newly established company will function as Cipla’s China headquarters. Recently, Cipla has further set up Cipla (Jiangsu) Pharmaceutical Co., Ltd., a joint venture in Jiangsu Province, with Jiangsu Acebright Pharmaceuticals Co., Ltd. which is controlled by Shanghai Acebright Pharmaceuticals Group Co., Ltd. The joint venture has a registered capital of USD 30 million. Cipla’s European subsidiary holds 80% shares and Jiangsu Acebright holds 20% shares in the joint venture which mainly manufactures respiratory drugs and potentially oncology products.
Zhong Lun has provided full legal services for Cipla in setting up the China headquarters and joint venture, including the analysis of the legal regime for market entry, site selection, due diligence, transaction document drafting, negotiation, company registration etc. This project is led by Yang Zhou, partner of Zhonglun . The team members include Grace Lyu, Rui Wang and Sherry Xu etc.
Cipla is one of the largest pharmaceutical companies in India. It was established in 1935 and headquartered in Mumbai. It mainly develops and produces drugs in respiratory, cardiology, diabetes and anti-retroviral segments. Cipla is listed on the National Stock Exchange of India and the Bombay Stock Exchange. Cipla has 44 manufacturing sites around the world producing 1,500+ products to cater to over 80 markets. As an Indian pharmaceutical giant, Cipla views China as a crucial part of its future roadmap. Shanghai Acebright, Cipla's Chinese partner, was founded in 1996 and is one of the world's major manufacturers of anti-AIDS drugs and vitamins. Setting up the joint venture between Cipla and Acebright is a critical milestone for Cipla to expand its footprint in China.