Cipla Limited: History, Latest Updates, Milestones, Subsidiaries & Share Price

Introduction

Cipla, established in 1935 as Chemical Industrial & Pharmaceutical Laboratories Ltd. and rebranded in 1984, is a prominent pharmaceutical company based in India. With a wide-ranging portfolio of over 1,500 products, Cipla operates globally, dividing its business into three core units: APIs, respiratory, and Cipla Global Access. The company's primary market is in India, with significant presence in Africa and North America. In the fiscal year 2023, Cipla achieved a total revenue of Rs. 22,753 crore (US$ 2.76 billion).

Cipla Moves In 2024:

In 2024, Cipla made significant strides across its various business segments. Let's delve into the key highlights of their performance in comparison to the previous year.

• On January 25, 2024, Samina Hamied resigned as Cipla's Executive Vice Chairperson due to personal reasons. She will continue in the role of a non-executive director. Balram Bhargava has been nominated as an additional independent director until March 31, 2029.

• Cipla is set to acquire and form partnerships in the US, strengthen its position in India, boost growth in Europe, and enhance margins in South Africa. The company's key focus includes addressing USFDA observations, expanding private and select tender business, derisking top launches, and resolving regulatory issues at manufacturing plants.

• Cipla anticipates achieving a record 24% EBITDA margin in the fiscal year 2024.

• Cipla disclosed a net profit of Rs 1,049 crore in the third quarter of FY24, marking a 33% year-on-year increase. The robust performance was driven by strong sales in both the US and India.

• As per the latest press release on Jan 2024, Cipla South Africa emphasizes that the Codeine Care Initiative has the potential to save lives.

• One-India Business Thrives: Cipla's One-India business witnessed a substantial 10% growth. This growth was primarily attributed to the branded prescription market, which exceeded an impressive 11% increase. The success in this segment was driven by key therapies within the chronic portfolio. Additionally, the trade generics business reported double-digit growth, even in the face of weak seasonality. This feat was achieved through effective on-ground commercial execution and the advantage of declining raw material costs, contributing to improved margins. While the quarterly performance of the consumer health portfolio faced challenges from inconsistent weather patterns, the core portfolio remained robust.

• U.S. Business Soars: Cipla's U.S. business experienced remarkable growth, with a 28% increase in absolute terms, reaching $229 million (or Rs 1,887 crore). This growth was fueled by strong traction across core products and an expanded market share in differentiated assets.

• Success in South Africa (SAGA Region): The South African (SAGA region) business recorded a substantial 12% growth in ZAR terms, driven by the prescription business and the over-the-counter segment. Notably, it outperformed the overall market by growing at 10%, while the market itself grew at 4%. In rupee terms, this growth amounted to an impressive 15%.

• Challenges in Other International Markets: Cipla faced a 4% decline in its business in other international markets, including emerging markets and Europe, when measured in INR terms.

• Bulk Drugs Segment: The bulk drugs segment also saw a 4% decline year-on-year.

• Investment in Research and Development: Cipla's commitment to research and development remained strong, with an investment of Rs 379 crore, equivalent to 5.7% of its sales. This marked a 13% increase compared to the previous year.

• Financial Position: As of September 30, 2023, Cipla maintained a healthy net cash position of Rs 5,850 crore.

• Market Response: Cipla's stock performed well in the market, trading 3.75% higher at Rs 1,193.25 per share. This outperformed the benchmark Sensex, which saw a 1.03% rise.

In summary, Cipla's performance in 2023 displayed strength and resilience across several key business segments, solidifying its position as a prominent player in the pharmaceutical industry.

Evolution of CIPLA: From Past to Present:

• 1935: Incorporated in Mumbai, Maharashtra, as Chemical Industrial & Pharmaceutical Laboratories Ltd.

• 1952: Set up its first research division.

• 1984: Changed its name to Cipla.

• 1985: Received FDA approval for bulk drug manufacturing plants.

• 1987: Launched several new products.

• 1999: Entered into a strategic partnership with Ranbaxy.

• 2002: Establish four state-of-the-art manufacturing facilities in Goa.

• 2005: Set up a formulation facility in Baddi, Himachal Pradesh.

• 2013: Acquired 100% stake in Medpro South Africa.

• 2014: Acquired a minority stake in US-based Chase Pharma.

• 2016: Chase sold its stake.

• 2017: Received approval for Q-TIB from the World Health Organization (WHO).

• 2018: Obtained approval for the generic version of Gilead Sciences, Inc.’s Letairis.

• 2019: Acquired the brand name and trademark rights for Vysov & Vysov M (Vildagliptin + Metformin) for the Indian market. It also acquired the novel anti-infective product, Elores, from Venus Remedies Limited.

• 2020: Signed a licensing agreement with Multi G to distribute COVID-19 rapid antibody test kits across Europe. Entered the anti-fungal product category with Clocip and launched Cipremi, an experimental anti-viral drug remdesivir.

• 2021: Received Emergency Use Authorization for Cipmolnu (Molnupiravir) for the treatment of adult COVID-19 patients. Launched a real-time COVID-19 detection kit called ‘ViraGen’ and entered intod a licensing agreement with Eli Lilly for the COVID-19 drug ‘Baricitinib' It also, partnered with the Drugs for Neglected Diseases initiative (DNDi) and signed a joint venture agreement with Kemwell Biopharma for biosimilars.

• 2022: Acquired Endura Mass, a nutritional supplement, and partnered with biotech Ethris for mRNA-based therapies. Launched a diagnostic device for various health conditions.

• 2023: Received the ESG Champion Award in the Pharmaceutical and Healthcare Sector from KPMG.

Timeline of CIPLA:

Inside CIPLA LTD: Exploring Subsidiary Ventures 

Cipla Limited

Corporate actions: On October 27, 2023, Cipla's board declared a final dividend of Rs 8.50 per equity share with a face value of Rs 2 each, equating to a 425% payout for the financial year 2022-23.

Main News: Cipla's Q2 Profits Soar by 45%, Records 14.4% Sales Surge to Rs 6,590 Crore

In the second quarter, Cipla experienced a 45% increase in profit, reaching Rs 1,156 crore, while sales surged by 14.4% to Rs 6,590 crore. The consolidated total revenue from product sales during this period amounted to Rs 6,589.22 crore, marking a 14.41% rise from the previous year's figure of Rs 5,759.28 crore.

Cipla Health Limited (CHL)

Main News: Cipla's Q2 Earnings: Net Profit Surges by 43.3% to Reach Rs 1,131 Crore, Exceeds Estimates

In terms of operations, Cipla experienced a 10% increase in its "One India" branded prescriptions and trade generics businesses, reaching Rs. 2,817 crore. The company confirmed that sales from Branded Prescriptions remained strong, exceeding the overall market growth. However, the consumer business was impacted by seasonal fluctuations during this quarter.

InvaGen Pharmaceuticals

Main News: InvaGen Pharma, a Cipla Subsidiary, receives favorable USFDA inspection report.

Cipla's subsidiary, InvaGen Pharmaceuticals Inc., has successfully secured the Establishment Inspection Report (EIR) from the US Food and Drug Administration (USFDA). This achievement follows a recent inspection conducted by the US FDA at InvaGen's manufacturing facility in New York, USA. The inspection received a categorization of 'Voluntary Action Indicated' (VAI).

During the inspection, InvaGen received five inspection observations in Form 483. Importantly, there were no repeat observations or concerns related to data integrity. The inspection encompassed both routine compliance with current Good Manufacturing Practices (GMP) and a Pre-Approval Inspection (PAI) aimed at evaluating a site transfer product within InvaGen’s portfolio.

Cipla Technologies LLC (CipTec)

Cipla Technologies LLC, based in San Diego, specializes in Respiratory, CNS, and Critical Care medicines. A key player for Cipla Ltd., it drives innovation in the US biotech hub, reflecting Cipla's global commitment to specialized medicine and healthcare solutions.

Exelan Pharmaceuticals

Cipla strengthened its anti-infective drug sector by acquiring Exelan Pharmaceuticals, emphasizing its commitment to solidifying its U.S. market presence and ensuring global access to quality healthcare.

Cipla South Africa

Cipla's purchase of Cipla South Africa emphasized its strong dedication to enhancing healthcare infrastructure in developing regions. This step bolstered Cipla's presence in Africa, enabling the company to offer a diverse population a range of affordable and vital medications and healthcare products.

Cipla Limited NSE/BSE: Current Share Prices 

Achievements and milestones:

CONCLUSION

Cipla's steadfast dedication to 'Caring for Life' is reflected in its extensive portfolio of over 1,500 products, positively impacting countless lives globally. Despite challenges in the competitive and regulatory landscape, the company perseveres, achieving remarkable progress and establishing new benchmarks in healthcare. From vital life-saving drugs to diverse consumer health products, Cipla exemplifies the power of innovation, integrity, and genuine care for well-being. Navigating the realm of healthcare, you can rely on Cipla to pave the path, guaranteeing a healthier future for all.

Frequently Asked Questions:

1. What is Cipla?

Cipla is a prominent pharmaceutical company based in India with a global presence. Established in 1935, it offers a vast portfolio of over 1,500 products and operates in three strategic units: APIs, respiratory, and Cipla Global Access. The company is a leader in the pharmaceutical industry, focusing on making quality healthcare accessible worldwide.

2. What is the current Cipla share price today?

Check out the current Cipla Limited share price today and real-time updates on stock prices on Enrich Money's stock analysis page here.

3. What were Cipla's key moves in 2023?

In 2023, Cipla experienced notable growth in its One-India business, witnessing a 10% increase primarily in the branded prescription market. Its U.S. business soared with 28% growth, reaching $229 million. The company also achieved 12% growth in the South African region, outperforming the market. However, it faced challenges in other international markets, experiencing a 4% decline.

4. What is Cipla's financial position?

As of September 30, 2023, Cipla maintained a robust net cash position of Rs 5,850 crore. Its stock performed well in the market, trading 3.75% higher at Rs 1,193.25 per share, outperforming the benchmark Sensex.

5. What is the market cap of Cipla stock?

The market capitalization of Cipla stock is Rs 94,800.19 crore.

6. What has been highest Cipla stock price in last 52 weeks?

52 Week highest of Cipla share price is Rs 1,277.90, while 52 week low is Rs 852.00

 

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