New Delhi: Drug maker Cipla Ltd will sell its 25% stake in Biomab Holding Ltd, a Hong Kong company that makes biosimilar drugs for the Chinese market, for nearly $26 million. Biosimilars are the generic versions of biological drugs.

The company on Monday said it has signed a definitive agreement to sell the stake to Biomab Brilliant, British Virgin Islands, which holds the remaining 75%, for a total consideration of $25,775,000.

“The closing of the transaction is subject to conditions precedent and on receipt of applicable regulatory and other approvals," Cipla said in a statement.

Cipla’s biological business will now be consolidated under Cipla BioTec. Cipla BioTec will focus on research, development, manufacturing and marketing of biosimilars for cancer, auto-immune diseases, respiratory diseases and diabetes.

“Cipla is seeing some very good momentum in its Biotech programmes. Through Cipla BioTec we will focus on global product development with the aim of making biological therapies accessible and affordable to patients in need," said Chandru Chawla, head of Cipla New Ventures.

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