Cipla's fortunes on Monday took a veritable bow after the company said Friday that Q4 net profit dropped 24%.
Analysts are expecting pharmaceutical companies to post sales growth of 10-11 per cent in the second quarter this financial year while the Ebitda (earnings before interest, tax, depreciation, and amortisation) margins are anticipated to improve by about 110 basis points. Ebitda improvement will be led by lower input costs because prices of active pharmaceutical ingredients (APIs) are 5-15 per cent lower year-on-year (Y-o-Y). Axis Capital said sales growth would be around 10 per cent, of which growth in the India market would be 11 per cent or so.
The plan was activated in October last year.
The tailwind of low price erosion in the US generics market, seen by domestic pharmaceutical companies in calendar year 2023 (CY23), may be reversing slowly, caution analysts. According to the latest data from US-based Centers for Medicare and Medicaid Services (CMMS), price erosion in calendar year 2024 (CY24) on a year-to-date (YTD) basis stood at a high of 15 per cent in the oral solid dosage (OSD) segment compared to a low of 1 per cent in CY23. This erosion, according to a report by Antique Stock Broking, was the highest in the last three years.
Cipla, the largest player in the domestic drug market, could play white knight for Cipla Medpro, South Africa's third-largest drugmaker and a key ally of the Indian company. Cipla is looking to acquire around 25 per cent in the manufacturing division of Cipla Medpro, where it does not hold any stake at present.
Cipla, though late in changing its strategy for international markets, has in recent years taken an inorganic route for expansion.
The patent office said Pfizer's claimed patent for Sutent, a cancer drug, did not involve any inventive step.
Indian pharmaceutical giant Cipla will give AIDS medicines at half the normal prices to former US President Bill Clinton's Foundation
Domestic drug major Cipla Ltd has signed a long-term collaboration agreement with Swiss specialty pharmaceutical major Meda, to develop and market an anti-allergic rhinitis drug for various global markets. Cipla will manufacture the drug, which will treat an ailment that causes a runny nose, and the Swiss company will market the product in Europe, Japan, Brazil, South Korea and Australia. The partners are developing the product as a nasal spray to treat allergic rhinitis.
In his last assignment, he led the global product strategy and commercialisation functions at Novartis Pharma AG.
Samina Vaziralli, daughter of joint Managing Director M K Hamied, was inducted into the company management. Cipla joins the league of major companies such as Lupin, Wockhardt, Elder Pharma, Piramal Healthcare and JB Chemicals in this regard.
"The product technology is coming from DNDi. Cipla will manufacture and make the product available in southeast Asia and other parts of the world at affordable pre-agreed prices," Amar Lulla, joint managing director, Cipla, said.
The National Pharmaceutical Pricing Authority has asked Cipla, the second biggest domestic drug maker, to pay Rs 748.27 crore (Rs 7.48 billion) as fine towards overcharging of controlled drugs.
Court has barred generic drugmaker Cipla Ltd from making or selling a cheaper copy of Novartis AG's respiratory drug Onbrez domestically.
The success of CMSA has been largely due to the deal with Cipla India, which recently made an offer of R10 per share.
Drug maker Cipla Ltd is rejigging its China business. The pharma company recently exited a significant part of its investment in its Chinese partner Desano Holdings, while ploughing back a part of the funds into the group's units manufacturing biosimilars and active pharmaceutical ingredients (APIs).
With reports of bird flu cases in Maharashtra being confirmed, leading pharmaceutical firm Cipla Ltd on Saturday said it would be releasing its version of Tamiflu in the Indian market in a week's time.
Drug maker Cipla always fought a lone battle to make drugs affordable in India.
The World Health Organisation has excluded two generic antiretroviral drugs of Cipla from its list of approved HIV medicines used more often in poor countries.
The first petition alleges that Cipla Ltd, India's second largest pharmaceutical company, violated Roche's patent by launching a generic version of Valcyte. The second petition says Cipla violated the Swiss drug maker's trademark by launching the product in a phonetically similar name, 'Valcept'.
In recent months, several pharma multinational corporations (MNCs) are increasingly turning to Indian companies to expand market reach in the country's pharmaceuticals sector. Sanofi's partnerships with Dr Reddy's, Cipla, and Emcure, AstraZeneca and Mankind Pharma - teaming up for asthma medication distribution - are a few instances of this trend. This strategy allows MNCs to leverage established Indian networks and reach a wider audience. Indian companies also benefit from global brands and expertise, say analysts.
Hamied however, will continue to be the Vice- Chairman of the company in a non-executive role effective April 1
The interim order was passed by the court on Wednesday on a plea filed by Roche Scientific on January 19 this year. The generic name of the drug is Erlotnib, which Roche markets as Tarceva and Cipla as Erlocip. Ahead of the next hearing, the court has asked Cipla to maintain records of sales of Erlocip.
Leading drug maker Cipla has got into a spat, with the US-based non-government organisation AIDS Healthcare Foundation accusing the company of selling key AIDS drug Viraday in India at a high price.
Cipla's race to be a frontrunner in the asthma market received a setback last week when an Italian company got the nod to sell an anti-asthma drug in Germany, and, Cipla's stock was squarely impacted in the bargain.
Cipla has agreed to buy two generics businesses in the United States in an all-cash deal worth $550 million.
The drugmaker has enjoyed big success with low-cost alternatives to AIDS and other high-priced drugs. But NGOs are taking away sales.
While Covid-related sales may come down going ahead, analysts expect the company's domestic sales to outperform the market, led by the chronics portfolio, which accounts for 55 per cent of sales.
Contests patent application for Nadifloxacin along with Hyderabad's Hetero.
The department of pharmaceuticals turned down a review petition by drugmaker Cipla against a price fixation order by the National Pharmaceutical Pricing Authority, slashing the price of Dytor Plus, a medicine for kidney and heart ailments.
India's largest domestic drug maker, Cipla, sold its emergency contraceptive brand, i-pill, to Piramal Healthcare in a deal worth Rs 950 million
The government on Wednesday said Indian drug makers Ranbaxy and Cipla have approached it for assistance in manufacturing Tamiflu to fight bird flu
The closing of the transaction is subject to receipt of applicable regulatory approvals in China.
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