Cipla, a leading pharmaceutical company, announced today its decision to further invest up to Rs 26 crore in Achira Labs, an associate company, to enhance their partnership and advance in the point-of-care (PoC) diagnostics sector. The definitive agreements were entered into on May 15, 2024, marking a significant step in Cipla’s strategic expansion.
The follow-on investment, structured in four tranches and contingent on the achievement of specific milestones, aims to bolster Achira Labs’ capabilities in designing, developing, and manufacturing microfluidics-based PoC immunoassay and molecular assay technologies. Upon completion of the first tranche, Cipla’s stake in Achira will increase to 27.27% of the total voting rights, up from the 21.05% stake acquired in June 2022 for Rs 25 crore.
Achira Labs, based in Bengaluru and founded by Dhananjaya Dendukuri, specializes in developing and commercializing regulatory-approved medical diagnostic products using innovative microfluidic technology. This technology facilitates the use of tiny blood samples and reagents, making diagnostic tests more efficient and accessible.
“Our decision to invest more in Achira is backed by Cipla’s commitment to advance in the PoC diagnostics space,” said Achin Gupta, CEO of One India Business at Cipla. “With the aim to reduce the existing gap in the ecosystem, our strategic financing will enable Achira to commercially launch and further develop test panels.”
Achira Labs has made significant strides in product development and research and development (R&D), positioning itself as a key player in the PoC medical test kits market in India. This investment underscores Cipla’s dedication to leveraging innovative technologies to enhance healthcare delivery and accessibility. As the healthcare industry increasingly focuses on rapid, accurate, and cost-effective diagnostic solutions, Cipla’s enhanced partnership with Achira Labs is expected to play a pivotal role in transforming the PoC diagnostics landscape.
The collaboration is set to drive significant advancements in the development and deployment of cutting-edge diagnostic technologies, ultimately benefiting patients through improved medical care and outcomes.
