Cipla Invests ₹50 Million in iCaltech — A Fresh Breath of Tech for Respiratory Care

Image Source: Business Standard

Global pharma leader Cipla Ltd has entered into a definitive contract to buy a 20% share in Bengaluru's medical device firm iCaltech Innovations Private Limited for around ₹50 million. This is purely for building up Cipla's portfolio in the segment of respiratory care and strengthening its leadership in the medical devices segment.

iCaltech, which can create and manufacture next-generation diagnostic equipment for respiratory therapy, is likely to post FY2024-2025 sales of ₹6.70 crore—higher than ₹4.19 crore in the previous fiscal. Investment by Cipla involves subscribing to 1,82,000 optionally convertible preference shares and one equity share of iCaltech, where completion is expected within a month.

Achin Gupta, Cipla's Global Operating Officer, observed that this "strategic funding will fill gaps in the respiratory diagnosis ecosystem," allowing iCaltech to innovate and expand its portfolio. The pharma giant claims such collaborations are at the core of their strategy, combining digital, device, and diagnostic strengths to drive lung health leadership.

Key Highlights

Purchase Price: Approximately ₹50 million for 20% voting shares.
Stake Structure: An equity share along with preference shares.
iCaltech Focus: Respiratory diagnostic medical devices.
Revenue (FY25): Fixed at ₹6.70 crore.
Timeline: One-month closure of the transaction.
Strategic Intent: Harness the digital and device strengths of Cipla in lung health.