CIPLA TO ACQUIRE SIKKIM FACILITY- MAKES 275 CRORES IN 4TH QUARTER.

NEW DELHI: Drug firm Cipla today said its net profit rose by 8.93 per cent to Rs 275.53 crore for the fourth quarter ended March 31, 2010.

Net sales of the company increased to Rs 1,317.49 crore for the quarter ended March 31, 2010, compared to Rs 1,235.17 crore in the same period last fiscal, the company said in a statement.

The company also said that its board, which met today, has approved the acquisition of two manufacturing facilities located in Sikkim and Kurkumbh (District Pune) at an aggregate consideration of Rs 82.02 crore.

The drug firm will acquire the Sikkim facility for Rs 51.38 crore and the Pune plant for Rs 30.64 crore. Till now, both the facilities were manufacturing drugs exclusively for Cipla, it said.

The Sikkim facility has capabilities to manufacture tablets, capsules, oral liquids, injections and is eligible for a 10-year tax holiday under the Income Tax Act, 1961, commencing from the financial year 2009-10.

Besides, the plant located at Kurkumbh has US FDA & WHO approved manufacturing facility for bulk drugs and has been acquired by way of slump sale arrangement.

For the year ended March 31, 2010, the company posted a net profit of Rs 1,082.01 crore, compared to Rs 776.81 crore in the previous fiscal.

The company reported net sales of Rs 6,368.09 crore for the year ended March 31, 2010 compared to Rs 4,960.60 crore in the corresponding fiscal.

During the fourth quarter, the firm sold its intellectual property rights and technical knowhow of 'i-pill', an emergency contraceptive brand, to Piramal Healthcare at an aggregate consideration of Rs 95 crore.

Shares of Cipla today closed at Rs 341.80 on BSE, down 1.26 per cent from its previous close.