India’s second largest pharmaceutical firm Cipla Ltd, edged out the multinational giant GlaxoSmithKline which was reigning supreme in the country for long, in terms of drug sales last year.

Consistently maintaining a fast-track growth momentum, Cipla has registered an 80-percent jump in net profit for the quarter ended on March 31 2006, driven by growth in domestic sales and exports.

In the fourth quarter, Cipla posted a net profit of 1.90 billion rupees. Net sales grew 63 percent to 8.7 billion rupees. Cipla's exports in the quarter grew 63.7 percent while domestic sales rose 56.4 percent. Cipla anticipates 15 to 20 percent growth in this year.

Cipla Limited: Background

Based in India’s commercial capital Mumbai, The Chemical, Industrial & Pharmaceutical Laboratories, currently Cipla was founded by Khwaja Abdul Hamied in the year 1935.

K A Hameid gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs. Cipla started markeing its product on September 22, 1937.

Today, Cipla is a leading player in anti-infective and anti-asthmatic formulations. The company also specializes in the manufacturing of steroids and hormones. Cipla manufactured ampicillin for the first time in the country in 1968. In 1983, Cipla developed two anticancer drugs, vinblastine and vincristine from the common garden plant Vinca rosea in association with the National Chemical Laboratory. The company pioneered the manufacture of the antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology in 1993. In 1997 Cipla became the first company in the world by launching transparent Rotahaler, a dry powder inhaler device. In 1998 the company launched lamivudine, and became one of the few companies in the world to offer all three component drugs of retroviral combination therapy (zidovudine and stavudine already launched).Cipla received clearance from the Drugs Controller General of India to manufacture and market the country's first non-nucleoside reverse transcriptase inhibitor (NNRTI), nevirapine, for the treatment of AIDS.

Cipla Ltd.: R&D

Cipla's R&D division focuses on the development of new products and new drug delivery systems across a range of therapies. The company is spending over 4 per cent of its total turnover on R&D activities. It filed 55 ANDAs during 2004-05 and received approval for 11 products from US FDA. The company supplies drugs to treat over 2 lakh HIV-positive patients worldwide. The company has also been among the major suppliers of anti-malarial drugs and drugs for schistosomiasis to international markets. It has a research alliance with a Bangalore-based biotech company Avesthagen, to develop biotherapeutic products.

Cipla Ltd.: Board of Directors

Chairman & Managing Director
Dr. Y.K. Hamied

Joint Managing Directors
Mr. M.K. Hamied
Mr. Amar Lulla

Non-Executive Directors
Dr. M.K.Gujar
Mr. V.C. Kotwal
Dr. H.R. Manchanda
Mr. S.A.A. Pinto
Mr. M.R. Raghavan
Mr. Ramesh Shroff

Manufacturing and R&D facilities

Mumbai

Corporate Office and R& D centre for formulations

Vikhroli
Manufacturing of bulk drugs & formulations (Liquid Orals, Aerosols),
R&D bulk drugs & formulations

Bangalore

Manufacturing of bulk drugs & formulations (R&D Bulk drugs)
Approved by US FDA (for bulk drugs); WHO

Patalganga

Manufacturing plant for bulk drugs & formulations (R&D Bulk drugs)

Kurkumbh

Manufacturing facility for bulk drugs & formulations
(R&D Bulk drugs)

Goa

Manufacturing set up for formulations

Baddi, Himachal Pradesh

Manufacturing of tablets & capsules, formulations

Products

Cipla has the largest product basket among all the pharmaceutical players in India ranging from prescription to OTC to animal health, besides a big kitty for active pharmaceutical ingredients (APIs) or bulk drugs.

Prescription

Amoebicides/Antiprotozoals
Anabolic steroids
Anaesthetics
Analgesics/Antipyretics
Antacids
Anthelmintics
Anti-inflammatory drugs
Anti-TB drugs
Antiacne drugs
Antiallergic drugs
Antialzheimer drugs
Antiasthma drugs
Antibiotics and Antibacterials
Anticancer drugs
Anticoagulants and Antiplatelet agents
Antidepressants
Antidiabetics
Antidiarrhoeals
Antiemetics/Antinauseants
Antiepileptic drugs
Antiflatulents
Antifungals
Antigout drugs
Antimalarials
Antimigraine drugs
Antiobesity drugs
Antiosteoporotic agents
Antiparkinsonian drugs
Antipsychotics
Antispasmodics
Antiulcerants
Antivirals
Anxiolytics
Appetite stimulants
Asthma related devices
Cardiovascular agents
Cerebral vasodilators
Cholesterol reducers
Digestive supplements
Diuretics
Erectile dysfunction therapy
Expectorants/Cold preparations/Mucolytes
Eye and ear preparations
Haematopoietic drugs
Haemostatics
Hematinic preparations
Hepatobiliary drugs
Hormone replacement therapy
Hormone-related drugs
Hypnotics
Immunosuppressants
Iron chelators
Laxatives
Muscle relaxants
Narcotic analgesics
Nasal preparations
Neuromuscular blocking agents
Nutritional supplements
Peripheral vasodilators
Rectal preparations
Systemic corticosteroids
Topical corticosteroids
Topical preparations
Urological products
Uterine stimulants

OTC

Cipla’s over-the-counter drugs portfolio comprises the following segments

Analgesics - Oral
Artificial Sweetener
Calcium Preparations
Child Care
Cold & Flu
Constipation
Cosmetics & Skin Care
Dental Care & Oral Hygiene
Diarrhoea
Food Supplements
Indigestion
Infant Food
Medicated Plasters
Medicated Shampoos
New Products to be Launched
Others
Protein Supplement
Soar Throat & Cough
Toiletries
Tonics
Urinary Alkalinizer

Veterinary

Cipla’s animal health care products division has four sections dedicated for equine, poultry, companion animals, livestock animals products, apart from Herbal Specialities.

Active Pharmaceutical Ingredients

Cipla is one of the biggest exporter of low-cost, high quality APIs across the world. Major bulk drugs and intermediates manufactured by Cipla are:

Adefovir Dipivoxyl
Albendazole USP
Albuterol Sulfate
Alendronate Sodium.3H2O
Alprazolam
Amlodipine Besylate
Anastrazole
Atorvastatin
Aripiprazole
Azelastine HCl
Alfuzosin HCl
Anagrelide HCl Monohydrate
Apraclonidine HCl
Bambuterol HCl
Beclomethasone Dipropionate
Bicalutamide
Brimonidine Tartrate
Budesonide
Bupropion HCl
Butenafine HCI
Butaconazole Nitrate
Carvedilol
Carboplatin
Carbidopa - underdevelopment
Celecoxib
Cetirizine Di HCl
Cisplatin
Ciclesonide
Cilostazol
Ciprofloxacin HCl
Citalopram HBr
Clopidogrel Hydrogen Sulphate
Clarithromycin
Cyproterone acetate
Danazol
Deferiprone
Desloratidine
Didanosine
Disodium Pamidronate
Docetaxel
Donepezil HCl
Dorzolamide
Doxazosin Mesylate
Duloxetine HCl
Dutasteride
Ebastine
Efavirenz
Emtricitabin
Escitalopram Oxalate
Esomeprazole Mg 3H2O
Estramustine Sodium Phosphate
Etidronate Disodium
Etoposide
Ezetimibe - underdevelopment
Famcyclovir
Febantel (Vet)
Felodipine
Fenbendazole
Fexofenadine HCl
Finasteride
Fluconazole
Fluoxetine HCl
Flutamide
Fluticasone Propionate
Formoterol Fumarate
Gabapentin
Gancyclovir
Gatifloxacin
Granisetron HCl
Imatinib Mesylate
Imiquimod
Irinotecan HCl 3H2O
Lamivudine
Lamotrigine
Lansoprazole
Leflunomide
Letrozole
Levalbuterol HCl
Levalbuterol Sulphate
Levocetrizine 2HCl
Levofloxacin 1/2H2O
Loratadine
Losartan Potassium
Levetiracetam
Lorazepam
Loteprednol Etabonate
Mebendazole
Mefloquine HCl
Meloxicam
Mirtazapine
Mitoxantrone HCl
Moclobemide
Modafinil
Mometasone Furoate
Montelukast Sodium
Moxifloxacin
Nelfinavir Mesylate
Nateglinide
Nevirapine
Nimodipine
Norfloxacin
Olanzapine
Omeprazole
Omeprazole Mg 3H2O
Ondansetron HCl.2H 2 O
Oxcarbazepine
Oxaliplatin
Paclitaxel
Pamidronic Acid/ Na Salt
Pantoprazole Sodium 1.5H 2 O
Paroxetine HCl
Perindopril Erbumine
Pioglitazone
Pramiprexole 2HCl
Prasterone (DHEA)
Praziquantel
Pregabaline - underdevelopment
Quetiapine Fumarate
Quinapril HCl
Rabeprazole Sodium
Rafoxanide (Vet )
Ramipril
Ribavirin
Riluzole
Risedronate Sodium
Risperidone
Rivastigmine Tartrate
Rizatriptan Benzoate
Rofecoxib
Rosiglitazone
Raloxifen
Ropinirole - underdevelopment
Salbutamol Sulphate
Salmeterol Xinafoate
S- Amlodipine Besylate
Saquinavir
Selegiline HCl
Sennoside
Sertraline HCI
Sibutramine HCl
Sildenafil Citrate
Simvastatin
Stavudine
Tamsulosin HCL
Tenofovir Disoproxil Fumarate - underdevelopment
Tadalafil
Tegaserod
Temazolamide
Terazosin
Terbinafine HCl
Terbutaline Sulphate
Tibolone
Tiotropium Bromide
Topotecan
Torsemide
Triclabendazole
Ticlopidine HCl
Tizanidine
Topiramate
Trimetazidine 2HCl
Valacyclovir
Valdecoxib
Venlafaxine HCl
Vinblastine Sulfate
Vincristine Sulfate
Zaleplon
Zidovudine
Zolendronic Acid
Zolmitriptan
Zolpidem
Ziprasidone

Cipla's exports

Cipla exports raw materials, intermediates, prescription drugs, OTC products and veterinary productsrugs to more than 160 countries including the U.S., and a number of countries in Europe, Africa, Australia, Latin America and the Middle East.

Cipla shipped products worth more than Rs.10,500 million last year. Exports amounted to more than Rs.10,500 million. Cipla exports. Cipla also offers technology for products and processes.

Recently, Cipla entered agreement with Pentech Pharma of USA for marketing a range of generic products for American market. Pentech is involved in developing therapies for lifestyle and quality of life conditions. This will further boost its export performance.

Cipla's manufacturing facilities have been approved by: Food and Drug Administration (FDA), USA; Medicines and Healthcare products Regulatory Agency (MHRA), UK; Therapeutic Goods Administration (TGA), Australia

Medicines Control Council (MCC), South Africa; National Institute of Pharmacy (NIP), Hungary; Pharamaceutical Inspection Convention (PIC), Germany; World Health Organisation (WHO); Department of Health, Canada

State Institute for the Control of Drugs, Slovak Republic and ANVISA, Brazil.

Cipla: Future Outlook

Cipla keeps the steady momentum of growth with an overall growth of more than 57% in income from operations for the quarter ended March 2006. Currently, we are one of the largest exporters of pharmaceutical products in India, exporting APIs and formulation products to more than 160 countries including the U.S., and a number of countries in Europe, Africa, Australia, Latin America and the Middle East.

Both the international as well as the domestic business have recorded a growth of more than 56% and 63% respectively, in the last quarter. All the major segments including anti-asthmatics, cardiovascular and anti-biotics/bacterials segments have shown good performance in the domestic market.

In the exports markets, anti-retrovirals, anti-malarials, anti-asthmatics, anti-depressants and cardiovascular segments have performed well.

In April 2006, Cipla raised US$ 170 million (Rs. 762.20 crores) through an issue of 1,10,46,310 Global Depository Receipts (GDRs). Each GDR represents one equity share of Rs.2 each and was priced at US$ 15.39 (equivalent to Rs.690). The said GDRs have been listed on the Luxembourg Stock Exchange and the Company has already applied to Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) for having the underlying shares listed.

The Board of Directors recommended the issue of bonus shares in the ratio of three shares for every two shares held and the shareholders have approved the same through a postal ballot on 21st March, 2006.The record date for determining the members who are entitled to the bonus shares is 25th April, 2006.

Consequent to the issue of GDRs and bonus shares, the paid-up equity share capital will stand increased to Rs. 155.46 crores.

Cipla has created strong reserve position and its reserves touched to Rs 1493.66 crore during the year ended March 2005. It has reduced its investments in the mutual funds drastically during 2004-05 which declined to Rs 18.30 crore from Rs 180.37 crore to part finance its ongoing expansion programmes.

As Cipla turns 70, the company is set to achieve further improvement with commissioning of its expansion projects and launching of new products. It has 140 ongoing projects with five companies in the US. It has a strategic alliance with the US generics major Watson, IVAX, Eon etc. Its alliance partners have filed 31 ANDAs and it is expected that they will filled additional 35 ANDAs in the next 12-15 months.