Cipla To Open $37M Manufacturing Facility in Iran

Indian generic drugmaker Cipla announced plans to open a drug manufacturing facility in Iran, despite current trade sanctions issued by the U.S. and E.U, Livemint reports.

Cipla’s $36.65 million investment will launch a partnership with a local distributor and give Cipla a 75 percent stake in the facility.

The company manufactures a wide portfolio of key therapies, including treatments for HIV, malaria, asthma, cancer, cardiovascular disease, and anti-infectives. Many of these markets are experiencing shortages in Iran due to the trade sanctions imposed by the U.S. and  E.U. to counter Tehran’s nuclear development.

Though trade sanctions do not apply to humanitarian aid like food and medicines, Reuters reports that the sanctions nonetheless make doing business with Iran problematic and few companies and banks are willing to risk the substantial fines they might incur in the wake of an unforeseen infraction.

According to Reuters, many Iranians credit the trade disruption for drug shortages and the prevalence of a black market.

“Humanitarian aid was not targeted, but the different aspects of sanctions have made it very difficult for Iran to import foot and medicine,” a senior Iranian government official told Reuters. “It allows smuggling networks to get rich.”

Black-marketed medicines are not only illegal, they can be extremely dangerous if not properly regulated.

Cipla released a statement, emphasizing their commitment to providing medicine to Iran and its many patients who have been put at risk by the sanctions.

The company said in the statement, “Cipla has been providing medicines to patients in Iran for several years and believes that Iranian patients cannot be denied access to medicines due to sanctions.”

Cipla also recently announced its plans to establish a presence in Kenya, and hopes the company’s further investment will help develop the Kenyan market.

Cipla, which has partnered with many drug makers in 170 countries worldwide, told Livemint that they do not expect any negative repercussions from the U.S. or E.U. for doing business with Iran.