Professional Documents
Culture Documents
August 2009
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Cipla – A Global Leader in Generics
120 22
• Growth opportunities exist in both
86 16
unbranded generics in developed 100
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markets and branded generics in 80 17
5
60 14
emerging markets 18
14
40 3
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20 48
• Regulators have been pushing for 27
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greater generic penetration to 2008 2013
reduce healthcare-related costs Source: IMS Health estimates 2008
seven years 55
50
• Strong prospects in emerging
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markets, driven by lower
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regulatory barriers, limited
competition and better profitability 35
2001 2002 2003 2004 2005 2006 2007
Source: Kaiser Family Foundation, September 2008 2
Leading Domestic Presence
• With over seven decades of operations, ‘Cipla’ brand has gained significant market reputation
within the Indian medical fraternity
• Largest market share of 5.3% (FY09) in terms of retail pharmaceutical sales in India
• 20 product brands ranked within Top 300 pharmaceutical brands in India (as on June 30, 2009)
• Market leader in certain categories, including respiratory care (52.0%), anti-viral (50.1%) and
urological (18.2%) in FY09
• Extensive distribution network consisting of 42 exclusive and dedicated sales depots, that
service doctors, as well as 2,300 stockists and 160,000 chemists pan-India
• Field force of over 4,300 personnel in 14 divisions, actively promoting Cipla’s specialty products
• Long-standing relationships with hospitals and institutions, continues to be an important
channel of distribution
5.0
4.0
3.0
2.0
2004 2005 2006 2007 2008 2009
Source: ORG IMS June 2009 3
Strategic Partnership Model
• API and formulations exported to approximately 175 countries through strategic alliances,
including partnerships and agency arrangements
• Export sales contributed 51.5% and 49.5% to FY09 and Q1 FY10 revenues, respectively
• Total of approximately 7,000 product registrations in place across various export markets
• International partnerships with governments and social service organizations to supply products
and/or technology, which helps strengthen relationships abroad
– Developed markets which are highly regulated and exposed to litigation risks
– Emerging markets which offer higher growth opportunities, due to lower entry barriers,
limited competition and higher profitability
Q1 FY10 Export Income
• Partnership model helps in:
MIDDLE EAST 9%
– Leveraging in-depth local expertise of
partners EUROPE 17% AFRICA 35%
• Not dependent on any particular product with no single product accounting for more than 2% of
the total income in FY09
• Product range covers most dosage forms including solids, liquids, injectables, ophthalmic
preparations, topical preparations, nasal preparations, inhalers and devices, rectal preparations
and buccal preparations
Therapeutic Breakdown of Cipla’s Revenue – Q1FY10 (Rs 13,880 mn) & FY09 (Rs 53,260 mn)
% (Q1 FY10) % (FY09)
17.41% 19.27%
ANTI-ASTHMA
32.32% ANTIBIOTICS
36.66% ANTIRETROVIRAL
CARDIOVASCULAR
14.13% ANTIDEPRESSANTS
15.13% ANTI-INFLAMMATORY
ANTIULCERANTS
ANTICANCER
2.77%
HORMONE - RELATED
10.71% 3.09%
2.53% OTHERS
2.91% 3.33% 12.11%
2.97% 5.24% 4.12%
3.58% 3.86% 2.34% 5.53%
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Leader in the Respiratory Care Category
• One of the leading players globally in respiratory care, with over three decades of experience in
developing complex technologies in inhalation therapy
• One of the largest producers of inhalers in the world – respiratory care products sold in
approximately 90 countries
• Leader in the Indian respiratory care category with market share of 52.0% in anti-asthmatic
products in FY09
• Wide range of drugs, delivery systems and add-on devices for patients, supported by an
aerosol research and development team and manufacturing facilities
• Wide range of respiratory care products, including preventer and reliever drugs and their
combinations
• Developed several proprietary and patented delivery systems and devices
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Modern Manufacturing Facilities
Baddi (2005)
Domestic market
Sikkim (2008)
Domestic market
Patalganga (1983)
US FDA approved
Bangalore (1972)
US FDA approved
• Team of 600 scientists, headed by Dr. Y.K. Hamied, to enhance existing and develop new
processes for APIs and formulations and develop new drug delivery systems
• Introduced more than 130 products in India since January 2008, as per ORG IMS
• 7,000 product registrations globally – 55 patents in India and 225 patents internationally
• R&D team works with strategic alliance partners to file DMFs and ANDAs, in the U.S., seek
marketing authorizations in Europe and file product registrations in other jurisdictions
• R&D undertaken to provide customers with technical dossiers, plant layouts for pharmaceutical
manufacture, R&D processes and regulatory batches
• Dr. Y.K. Hamied, Chairman and Managing Director, has been awarded the
Padma Bhushan, one of the highest civilian awards in India in 2005, for his
distinguished service and contributions to the pharmaceutical industry
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Significant Milestones in the History of Cipla
2008 Commenced commercial production for formulations at the Sikkim facility
1985 Received approval from the U.S. FDA for the bulk drug facilities
1952 Established the first research and development division for development of
pharmaceutical products
• Received the “scrip best company in an emerging market 2006” award from Scrip
World Pharmaceutical News
• Received the Dun and Bradstreet, American Express corporate award 2006
• Received the “pharma excellence” award for sustained growth from GIDC in June
2006
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Financial Snapshot
Gross Block (Rs mn) Net Current Assets (Rs mn) • Gross Block CAGR: 22%
35,000 • Net Current Assets CAGR: 26%
30,000 • Strong liquidity position, with the
25,000 Current Ratio steady at ~ 3x
20,000
15,000
10,000
FY07 FY08 FY09
35,000 12,000
30,000 10,000
25,000
8,000
20,000
6,000
15,000
4,000
10,000
2,000
5,000
0 0
FY07 FY08 FY09 FY07 FY08 FY09
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