Cipla Ltd company profile
BY OUR PHARMA CORRESPONDENT
May 17, 2006
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
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
Corporate Office and R& D centre for formulations
Manufacturing of bulk drugs & formulations (Liquid Orals, Aerosols),
R&D bulk drugs & formulations
Manufacturing of bulk drugs & formulations (R&D Bulk drugs)
Approved by US FDA (for bulk drugs); WHO
Manufacturing plant for bulk drugs & formulations (R&D Bulk drugs)
Manufacturing facility for bulk drugs & formulations
(R&D Bulk drugs)
Manufacturing set up for formulations
Baddi, Himachal Pradesh
Manufacturing of tablets & capsules, formulations
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.
Antibiotics and Antibacterials
Anticoagulants and Antiplatelet agents
Asthma related devices
Erectile dysfunction therapy
Eye and ear preparations
Hormone replacement therapy
Neuromuscular blocking agents
Cipla’s over-the-counter drugs portfolio comprises the following
Analgesics - Oral
Cold & Flu
Cosmetics & Skin Care
Dental Care & Oral Hygiene
New Products to be Launched
Soar Throat & Cough
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:
Anagrelide HCl Monohydrate
Carbidopa - underdevelopment
Cetirizine Di HCl
Clopidogrel Hydrogen Sulphate
Esomeprazole Mg 3H2O
Estramustine Sodium Phosphate
Ezetimibe - underdevelopment
Irinotecan HCl 3H2O
Omeprazole Mg 3H2O
Ondansetron HCl.2H 2 O
Pamidronic Acid/ Na Salt
Pantoprazole Sodium 1.5H 2 O
Pregabaline - underdevelopment
Rafoxanide (Vet )
Ropinirole - underdevelopment
S- Amlodipine Besylate
Tenofovir Disoproxil Fumarate - underdevelopment
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
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
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.