The deal will boost Cipla's cosmetology portfolio, which has been growing in recent years, according to a report in The Economic Times. Percos India's products are focused upon aging and skin pigmentation.
The deal is being seen as a good marketing strategy on Cipla's part as consumers do not always go for cosmetology products via doctors' prescriptions route. Such products also mostly remain out of the government's price control norms.
Major pointers of the deal:
- The deal size is estimated at Rs 90 crore.
- Cipla will now hold the rights to market skincare products of Percos India, which are estimated at a collective sale value of Rs 10 crore.
- Some of the skincare products of Percos that will be marketed by Cipla include Vedaderm, Claz, Actipeel, Tryses and Glycoveda.
- For the next five years, Percos India will manufacture the skincare brands, post which Cipla will get the rights to manufacture them as well.
Cipla last week had announced the appointment of Umang Vohra of Dr Reddy's Laboratories as its global chief strategy and financial officer.
Cipla had registered Rs 690.05 crore net profit for April-June 2015-16, a rise of 107 per cent over the corresponding quarter of fiscal 2014-15. Total income from operations rose to Rs 3,542.27 crore in the quarter under review from Rs 2,474.46 crore in Q1 2014-15.