Cipla would pay Rs 25 crore for a 21% share in Achira Labs

Cipla Ltd, a pharmaceutical company, announced on Friday that it will buy a 21.05 percent share in Achira Labs Pvt Ltd, a company that develops and sells point-of-care (PoC) medical test kits in India, for Rs 25 crore. Cipla said in a regulatory filing that it has signed formal agreements with Achira Labs for this reason.

"Through the design, development, and production of microfluidics-based technologies, this investment will permit a Cipla entity's strategic participation in the PoC diagnostics and AMR (antimicrobial resistance) area," it stated. Achin Gupta, CEO of Cipla's One India Business, stated, "This investment will help us keep our promise to provide everyone with innovative, cheap, and high-quality diagnostic solutions. We will continue to make strategic investments to enable access to point-of-care test kit solutions, guided by our mission of Caring for Life."

A PoC that allows for fast identification of the infection-causing bug would be immensely useful in determining the best antibiotic to use early in the treatment process. The deal is expected to be completed within 60 days of "the signing of definitive agreements or such other mutually agreed upon date, and will be subject to the conditions precedent set out in the definitive agreements," according to Cipla.

Bengaluru-based Achira is a medical diagnostics firm that uses microfluidic technology to develop medical diagnostic tools with the goal of bringing complex medical testing closer to the point of diagnosis, treatment, and care.