Cipla

Cipla Limited

Type	Public
Traded as	BSE: 500087 NSE: CIPLA BSE SENSEX Constituent CNX Nifty Constituent
Industry	Pharmaceuticals
Founded	1935
Founder	Dr. K. A. Hamied
Headquarters	Mumbai, Maharashtra, India
Area served	Worldwide
Key people	Y. K. Hamied, Chairman Subhanu Saxena (CEO)
Products	Pharmaceuticals and diagnostics
Revenue	104.83 billion (US$1.7 billion) (2013-14)[1]
Operating income	18.80 billion (US$300 million) (2012-13)[1]
Net income	13.89 billion (US$220 million) (2013-14)[1]
Total assets	109.68 billion (US$1.7 billion) (2013-14)[1]
Total equity	100.91 billion (US$1.6 billion) (2013-14)[1]
Number of employees	22,036[2]
Website	www.cipla.com

Cipla Limited is an Indian multinational pharmaceutical and biotechnology company, headquartered in Mumbai, India;^[3][4][5] Belgium, & Surrey in the European Union; and Miami, Florida, in the United States; with manufacturing facilities in Goa (eight), Bengaluru (one), Baddi (one), Indore (one), Kurkumbh (one), Patalganga (one), and Sikkim (one), along with field stations in Delhi, Pune, and Hyderabad.^[6] Cipla primarily develops medicines to treat cardiovascular disease, arthritis, diabetes, weight control and depression; other medical conditions.^[7][8][9]

As of 17 September 2014, its market capitalisation was 517 billion (US$8.2 billion), making it India's 42nd largest publicly traded company by market value.^[10][11][12]

History

It was founded by Dr. Khwaja Abdul Hamied as 'The Chemical, Industrial & Pharmaceutical Laboratories' in 1935 in Mumbai.^[13][14]
The name of the Company was changed to 'Cipla Limited' with effect from 20 July 1984, wherein the word Cipla came from the first letters of each word in the old name 'The Chemical, Industrial & Pharmaceutical Laboratories'.^[14]
In the year 1985, US FDA approved the company's bulk drug manufacturing facilities.^[15]
In 1994, Cipla launched Deferiprone, the world’s first oral iron chelator.^[13]
In 2001, Cipla offered medicines (antiretrovirals) for HIV treatment at a fractional cost (less than $350 per year per patient).^[16]
In 2012, the company slashed prices of three life-saving cancer drugs by 50-64%.^[17]
In 2013, it increased its stake in its South African joint venture CIPLA Medpro from 50% to 100% stake for 27 billion (US$430 million) to strengthen its position in the African continent. Cipla Medpro is the third largest South African pharmaceutical company and it was founded in 1993.^[1][18]

In April 2015, Cipla said its UK subsidiary Cipla (EU) will acquire Brazilian firm Duomed Produtos Farmaceuticos for about Rs 2.6 crore (approximately US$425,000).^[19]

Operations

Cipla has 34 manufacturing units in 8 locations across India and has presence in 170 countries.^[20][21] Exports accounted for 48% 49.48 billion (US$790 million) of its revenue for FY 2013-14.^[1] Cipla spent INR 517 cr. (5.4% of revenue) in FY 2013-14 on R&D activities.^[1] The primary focus areas for R&D were development of new formulations, drug-delivery systems and APIs (active pharmaceutical ingredients). Cipla also cooperates with other enterprises in areas such as consulting, commissioning, engineering, project appraisal, quality control, know-how transfer, support, and plant supply.

Products and services

Cipla manufactures a range of pharmaceutical and personal care products.^[22] The company offers active pharmaceutical ingredients (APIs); and formulations in therapeutic areas, such as allergy, analgesic, anti malarial, anti-infectives, cardiology, dermatology and cosmeceuticals, diabetology, gastroenterology, HIV-AIDS, hormones and steroids, iron chelators, musculoskeletal, neuropsychiatry, nutritional and ophthalmic products, oncology, respiratory, urology, and women’s health in various dosage forms. It also provides veterinary products for various animals, including companion, equine, general care, live stock, and poultry. In addition, the company offers inhaled medication and devices, such as dry powder inhalers, single-dose capsule and multi-dose dry powder inhalers, breath-actuated metered dose inhalers, non-static spacers, baby and infant masks, and nasal sprays. Further, it provides consulting, commissioning, plant engineering, and technical know-how transfer and support services.^[22]
Cipla has over 2000 products in 65 therapeutic categories available in over 40 dosage forms.^[23] Its key products include the following drugs - Escitalopram (anti-depressant), Lamivudine, Fluticasone propionate.^[2]

HIV/AIDS medication

Cipla is the world's largest manufacturer of antiretroviral drugs^[24] (ARVs) to fight HIV/AIDS, as measured by units produced and distributed. Roughly 40 percent of HIV/AIDS patients undergoing antiretroviral therapy worldwide take Cipla drugs.^[25][26]

From 1972 until 2005 Indian law did not allow product patents on drugs. As a result, Cipla was able to manufacture medicines which enjoyed patent monopoly in other countries.

Cipla also pioneered a three-in-one tablet called Triomune containing a fixed-dose combination (FDC) of three ARVs (Lamivudine, stavudine and Nevirapine), something difficult elsewhere because the three patents were held by different companies. Another popular fixed-dose combination is produced under the name Duovir-N. This contains Lamivudine, Zidovudine and Nevirapine. Cipla manufactures generic versions of many of the most commonly prescribed anti-retroviral medication in the market,^[27] and is a highly capable manufacturer in its own right. This innovation made ARVs far more accessible and easy-to-take for patients everywhere, but particularly in poor- and middle-income countries, where the vast majority of people on anti-retroviral therapy (ART) now take such combination pills.

Cipla was among the first companies to register AIDS drugs under the US relief program PEPFAR.^[28] It has also been a major supplier of ARVs to the Clinton Foundation's HIV/AIDS Initiative, which has negotiated low-cost drug supplies for numerous developing countries.

Cipla has played an important role in fighting HIV/AIDS in Africa and other developing countries through its price offers to leading NGOs such as Doctors Without Borders and Oxfam, and with its keen participation in PEPFAR, the Global Fund, the Clinton Foundation's HIV/AIDS Initiative.^[29]

Antiflu and Virenza

In December 2008, Cipla won a court case in India allowing it to manufacture a cheaper generic version of oseltamivir, marketed by Hoffmann-La Roche (Roche) under the trade name Tamiflu, under the Cipla tradename Antiflu. In May 2009, Cipla won approval from the World Health Organization certifying that its drug Antiflu was as effective as Tamiflu, and Antiflu is included in the World Health Organization list of prequalified medicinal products.^[30]

Cipla announced that Oseltamivir 75 mg capsules marketed as `Antiflu` by the company has been included in the World Health Organization (WHO) list of prequalified medicinal products (PMP).

Oseltamivir is indicated for use in the treatment of influenza A (H1N1) infection commonly known as swine flu.

Cipla also produces a generic version of zanamivir, marketed by Glaxo under the trade name Relenza, under the Cipla tradename Virenza.

The New York Times reported that the government of Saudi Arabia purchased stockpiles of Antiflu in preparation for Hajj in late 2009, fearing an outbreak of flu among Hajjis arriving from all parts of the world.^[31]

The firm announced the launch of the drug under the name "Antiflu" on 11 November 2009 to be sold as a category X drug, strictly under prescription.^[32]

Cancer medications

In May 2012, Cipla made headlines by slashing prices on several cancer drugs.^[33] The Wall Street Journal quoted Cipla chairperson Yusuf Hamied as saying: "We had taken the lead to provide affordable medicine for AIDS and I think the time has now come -- 10 years later -- when we do a similar thing for cancer."^[34] The revised prices averaged roughly 75% less than the previous ones, and Hamied announced plans to similarly reduce prices on the full range of cancer drugs made by Cipla. The move was expected to prompt significant price drops from other producers, providing access to medicine and saving many millions of cancer patients unnecessary suffering and/or death.^[35]

Other drugs

Cipla also has a product range comprising antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs. The company has at least nine different prescription drugs registered with the US FDA.^[36] Active in the anti-bacterial and anti-asthmatic segments, Cipla was the first in Asia to launch a non-CFC metered dose inhaler.

In a September 2011 article, The New York Times discussed Cipla's efforts to radically lower costs of biotech drugs for cancer, diabetes and other noncommunicable diseases, referencing the leading role the company had played in getting low-cost AIDS drugs to the developing world:

In retrospect, the battle 10 years ago over AIDS medicines was a small skirmish compared with the one likely to erupt over cancer, diabetes and heart medicines. The AIDS drug market was never a major moneymaker for global drug giants, while cancer and diabetes drugs are central to the companies’ very survival.^[37]

Listings and shareholding

The equity shares of Cipla are listed on the Bombay Stock Exchange,^[38] where it is a constituent of the BSE SENSEX index,^[39] and the National Stock Exchange of India,^[40] where it is a constituent of the CNX Nifty.^[41] Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.^[1]
As on 30 September 2014, the promoter group, Dr. Y. K. Hamied and his family, held around 36.80% equity shares in Cipla. Around 148,000 individual shareholders held approx. 18.67% of its shares.^[42] LIC is the largest non-promoter shareholder with approx. 6.45% shareholding in the company by the end of September 2013.^[43]

Shareholders (as on 31-March-2014)	Shareholding[42]
Promoter Group	36.80%
Foreign Institutional Investors (FII)	23.32%
Individual shareholders	19.00%
Insurance companies	06.59%
Private Corporate Bodies	04.68%
Mutual Funds and UTI	04.43%
NRI/FCB/Others	03.46%
GDRs	01.10%
Total	100.0%

Employees

As on 31 March 2013, the company had 22,036 employees (out of which 2,455 were women (7.30%) and 23 were employees with disabilities (0.1%)).^[2] During the FY 2013-14, the company incurred 12.85 billion (US$200 million) on employee benefit expenses.^[1]

Awards and recognitions

• In April 2013, former US President Bill Clinton praised Cipla and other Indian generic drug companies for their contribution in the fight against HIV/AIDS and noted that their cheap drugs saved millions of lives.^[44]
• In 2012, Cipla received the Thomson Reuters India Innovation Award.^[45]
• Cipla won Dun & Bradstreet American Express Corporate Awards for 2006.^[46]
• In 2005, Forbes included Cipla in the 200 'Best under a billion' list of best small Asian companies.^[47]
• In 1980, Cipla won Chemexcil Award for Excellence for exports.^[15]
• In July 1939, Mahatama Gandhi (later conferred with the title "Father of the Nation" by Government of India) visited Cipla.^[13][48]

Initiatives

• Palliative care:

Cipla established a hospice named 'Cipla Palliative Care and Training Centre' for terminally ill cancer patients in Pune in 1997.^[49] The patient in this hospice get all medicines and services free of cost.^[50][51][52] The company, in its Business Responsibility Report for FY 2013-14, informed that it has cared for over 8,500 patients in last 16 years.^[2]

Criticism

• Sale of emergency pregnancy termination pills over-the-counter:

In August 2007, Cipla launched pregnancy termination pill 'i-pill'.^[53] The morning-after pill was sold as the easiest way to avoid unwanted pregnancies,^[54] but drew criticism as it was sold over-the-counter (hence not requiring a medical prescription) and for the probable side effects. The drug contained twice the amount of main ingredient ‘levonorgestrel’ as compared to similar drugs such as Norlevo (Win Medicare) and Ecee2 from German Remedies. One industry specialist noted that there was no evidence across the world of the drug being safe for females below 16 years of age. An industry insider, who also has products in oral contraception, said the amount of active ingredient in the pill could cause problem in women with high blood pressure, heart disease. The same analyst noted that the drug was not safe for people with problems such as liver disease, diabetes, migraines or asthma. Hence, if the drug was distributed over the counter then there was no practical way to prevent people with aforementioned issues or people below 16 years from buying the tablet.^[55]

• Sale of generic drugs:

Generic pharmaceutical companies, like Cipla, are criticised by original drug manufacturers as they (generic pharma companies) sell the products developed by others, without paying anything to the developers.^[56] The developers invest a lot of money in research and development, clinical trials and marketing of the products. The medicine patent laws in many developing countries, like India, allow generic pharma companies to produce branded medicines.^[57] On average, the cost of a generic drug is 80 to 85 percent lower than the brand name product.^[58] This leads to criticism of both the countries' patent laws and the generic companies as it denies the original manufactures of their share of profits, a part of which they could have used for research and development of advanced medicines.^[59] The company in its reply said that the population in the third world cannot afford the prices of medications that are prevailing in the first world, and therefore medicines should be made available at affordable prices.^[57]

See also

• Pharmaceutical industry in India
• Generic drug
• List of pharmaceutical companies

References

External links

• Official website
• Cipla - The Human Care Company
• Facts about Generic Drugs at U.S. Food and Drug Administration
• Cipla at Times of India
• Cipla at Bombay Stock Exchange
• Cipla at National Stock Exchange of India

Business data

• Cipla at Google Finance
• Cipla at Yahoo! Finance
• Cipla at Reuters
• Cipla at Hoovers

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