Cipla Ltd Company Profile 342e1n

SWOT ANALYSIS OF CIPLA LTD. Submitted by:

Submitted to:

Mazhar Ahmad and Adnan MBA (PM) IInd SEMESTER Department Of Management Jamia Hamadard

DR. Reshma Nasreen Department Of Management Jamia Hamdard

CONTENTS  Company profile.  Board of Directors  Manufacturing and R&D facilities  Company Background  R&D  Mergers and acquisitions of Cipla ltd.  Important dates  Products  Future Outlook  SWOT Analysis  ETOP

company profile

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

Consistently maintaining a fast-track growth momentum, Cipla has ed 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 Ltd.: Board of Directors

Chairman & Managing Director  Dr. Y.K. Hamied

t 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),

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

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 ed 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.

Mergers and acquisitions of Cipla ltd.

 Cipla to buy meditab specialties to boost API and intermediate production capacity for $28 m 25 Aug 2010.  Akorn and Cipla team up in 2007 for exclusive manufacturing and supply agreement for an undisclosed inhaled drug.  Cipla talk with big pharma, Takeda mulls and number of global pharma players, including Pfizer about potential generic supply deals.

Important dates 1935-Dr K A Hamied sets up "The Chemical, Industrial and Pharmaceutical Laboratories Ltd." in a rented bungalow, at Bombay Central. 1941-As the Second World War cuts off drug supplies, the company starts producing fine chemicals, dedicating all its facilities for the war effort. 1952-Sets up first research division for attaining self-sufficiency in technological development. 1960-Starts operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on natural products. 1968-Cipla manufactures ampicillin for the first time in the country. 1972-Starts Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants. 1976-Cipla launches medicinal aerosols for asthma. 1980-Wins Chemexcil Award for Excellence for exports. 1982-Fourth factory begins operations at Patalganga, Maharashtra. 1984-Develops anti-cancer drugs, vinblastine and vincristine in collaboration with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing inhouse technology for indigenous manufacture of a number of basic drugs. 1985-US FDA approves Cipla's bulk drug manufacturing facilities. 1988-Cipla wins National Award for Successful Commercialisation of Publicly Funded R&D. 1991-Lauches etoposide, a breakthrough in cancer chemotherapy, in association with Indian Institute of Chemical Technology. The company pioneers the manufacture of the antiretroviral drug, zidovudine, in

technological collaboration with Indian Institute of Chemical Technology, Hyderabad. 1994-Cipla's fifth factory begins commercial production at Kurkumbh, Maharashtra. 1997-Launches transparent Rotahaler, the world's first such dry powder inhaler device now patented by Cipla in India and abroad. The palliative cancer care centre set up by the Cipla Foundation, begins offering free services at Warje, near Pune. 1998-Launches lamivudine, becoming one of the few companies in the world to offer all three component drugs of retroviral combination therapy (zidovudine and stavudine already launched). 1999-Launches Nevirapine, antiretroviral drug, used to prevent the transmission of AIDS from mother to child. 2000-Cipla became the first company, outside the USA and Europe to launch CFC-free inhalers – ten years before the deadline to phase out use of CFC in medicinal products. 2002-Four state-of-the-art manufacturing facilities set up in Goa in a record time of less than twelve months. 2003-Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic obstructive pulmonary disease (COPD). Commissioned second phase of manufacturing operations at Goa. 2005-Set-up state-of-the-art facility for manufacture of formulations at Baddi, Himachal Pradesh. 2007-Set-up state-of-the-art facility for manufacture of formulations at Sikkim. 2010-Set up state-of-the-art facility for manufacture of formulations at Indore.

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.

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.

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 istration (FDA), USA; Medicines and Healthcare products Regulatory Agency (MHRA), UK; Therapeutic Goods istration (TGA), Australia Medicines Control Council (MCC), South Africa; National Institute of Pharmacy (NIP), Hungary; Pharamaceutical Inspection Convention (PIC), ; 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 antibiotics/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. 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.

SWOT Analysis

Strength  Exports to over 175 countries that contribute 54% of total turnover.  Market leader in key therapeutic areas such as respiratory care and anti-viral.  Company has an extensive distribution network.  Partnered 8 leading generic companies in the us for nearly 125 project.  Cipla has that features among the top 300 brands.  Largest basket of around 1500 formulations.  One of the country’s best R&D process.

Weakness  Domestic growth was steady at 10 per cent.  Growth in formulation exports was affected due to various factors including non availability of important raw materials, lower tender business in anti- retroviral.  Impact of IPR regime.

Opportunities

 46 ANDAs pending for approval in US.  Plans of launching bio-similar, particularly relating to the oncology, anti-asthmatic and anti- arthritis categories  Around 10% contributions to the revenue from the Indore SEZ to start coming in from FY2013E.  Bio- therapeutic: a new and promising area.  Agreement with avesthagen.  Venturing towards areas of cardiology and anti-cancer.  5-6 inhales products are at different stages of approvals.

Threat

 Some pending legal cases on of alleged overcharging in respect of certain drugs under the drug price control order  Sensitive to fluctuation in foreign currency exchange rates.  Partnership related and  Potential de-rating.