Cipla invests in plant for cheaper cancer drugs in Durban
THE biotech subsidiary of Indian pharmaceutical company Cipla plans to invest R1.3bn in a biosimilar manufacturing facility in Durban, a move it promises will yield cheaper new-generation cancer drugs that even the state sector will be able to afford.The South African plant will be the first such facility that Cipla BioTec establishes outside India, and is expected to begin production in 2018. The investment follows Cipla’s 2015 launch of an R185m distribution centre in Cape Town and a R400m upgrade to its existing manufacturing site in Durban.The new venture is to be located in the Department of Trade and Industry’s special economic zone near the Durban airport, the Dube Tradeport.Companies that set up shop in the special economic zone were offered tax breaks and low rentals, said the department’s director-general, Lionel October.They paid a corporate tax rate of just 15% (compared with 28% outside the zone), were eligible for an accelerated depreciation allowance for their investm...
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