* No plans to sell stake in Cipla as part of pact - exec
* Global firms seeking low-cost producers
* Glaxo has pact with Dr Reddy’s for generic drugs
* Cipla shares rise as much as 3.6 percent (Adds details, share price)
By Bharghavi Nagaraju
MUMBAI, Dec 1 (Reuters) - Cipla Ltd (CIPL.BO) is in talks with a host of global drug makers, including Pfizer Inc (PFE.N), to supply generic products, a top official of the Indian drug maker said, sending its shares up more than 3 percent.
“Yes, we are talking to some companies,” Cipla’s joint managing director, Amar Lulla, said. “Nothing has been signed yet.”
He declined to give a timeline when a deal would be announced or a forecast for the revenue expectation from such a deal. Lulla denied a TV report Cipla may sell a stake as part of the drug supply pact.
At 12:06 p.m. (0636 GMT), shares in Cipla, which has a market value of $5.5 billion, was trading 2.7 percent higher at 328.70 rupees while the main Mumbai market .BSESN was nearly 1 percent. The stock had gained as much as 3.6 percent earlier.
Global drug makers such as GlaxoSmithKline (GSK.L) and Pfizer are increasingly looking to low-cost destinations like India to tie up supplies as they battle falling prices and increasing generic competition.
In June, Dr Reddy’s entered into a pact with GlaxoSmithKline under which Glaxo will get access to its drugs and supply them in emerging markets such as Africa, the Middle East, and Latin America. [ID:nLF635888]
Like other drugmakers, Pfizer is also grappling with growing risks of a slump in earnings on patent expirations over the next two years, coupled with rising regulatory and scientific hurdles for bringing next-generation drugs to the market. (Writing by Sumeet Chatterjee; Editing by Ranjit Gangadharan) ((email@example.com; +91-80-3982 7450; Reuters Messaging: firstname.lastname@example.org)) ((If you have a query or comment on this story, send an email to email@example.com))