Drug major Cipla Ltd. on Tuesday said its South African subsidiary will acquire 30 percent stake in connected healthcare firm Brandmed Pty Ltd for an upfront cash consideration of ZAR 65 million (nearly Rs 32 crore).
Cipla Medpro, South Africa's third-largest pharmaceutical company in the private sector, will also pay certain milestone payment for the stake acquisition over a period of three years, subject to meeting agreed profit targets.
“This transaction will help to transition healthcare from being reactive to a proactive and real-time monitoring model that focuses on promoting wellness instead of managing illness,” Cipla Medpro Chief Executive Officer Paul Miller said in a statement.
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By pairing the company's strengths with Brandmed's patient-centric approach in healthcare, Cipla Medpro will enhance its diverse portfolio to provide holistic care to patients from awareness to disease management, Miller said.
Brandmed, founded in 2014, has developed a fully integrated end-to-end solution to address outcomes and value-based care for patients with chronic lifestyle and non-communicable diseases such as hypertension, diabetes, high cholesterol, asthma and chronic obstructive pulmonary disease.
Cipla shares Tuesday fell 1.2 percent to Rs 559.30 apiece on the Bombay Stock Exchange.
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