CIPLA Limited

Cipla, originally founded as The Chemical, Industrial & Pharmaceutical Laboratories is

a prominent Indian pharmaceutical company, best-known outside its home country for
producing low-cost anti-AIDS drugs for HIV-positive patients in developing countries.
Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control,
depression and many other health conditions, and its products are distributed in more than
180 countries worldwide. [1] Among the hundreds of generic medications it produces for
international distribution are atorvastatin, amlopidine, fluoxetine, venlafaxine
hydrochloride and metformin.

CIPLA Limited

Founded 1935
Headquarters Mumbai, India
Key people Y. K. Hamied (CMD), Chairman
Industry Pharmaceuticals
Revenue ▲ Rs. 37.6 billion (~939M USD) (2006)
Net income ▲ Rs. 9.1 billion (2006)
Employees over 7,000
Website www.cipla.com
Cipla and the Fight against HIV/AIDS in the
Developing World
Today (2007), Cipla is the world's largest manufacturer of antiretroviral drugs (ARVs) to
fight HIV/AIDS, as measured by units produced and distributed (multinational brand-
name drugs are much more expensive, so in money terms Cipla medicines are probably
somewhere down the list). Roughly 40% of HIV/AIDS patients undergoing antiretroviral
therapy worldwide take Cipla drugs. Ranked third in Generic market share statistics in
South African Private Sector.

Because Indian law from 1972 has allowed no (end-product) patents on drugs, and
provided for compulsory licensing, Cipla was able to manufacture medicines which enjoy
patent monopoly in certain other countries (particularly those where large, multinational
pharmaceutical companies are based). By doing so, as well as by making an executive
decision not to make profits on AIDS medication, Cipla reduced the cost of providing
antiretrovirals to AIDS patients from $12,000 and beyond (monopoly prices charged by
international pharma conglomerates) down to around $300 per year. Today they are able
to do so for under $150 per patient per year. While this sum remains out of reach for
many millions of people in Third World countries, government and charitable sources
often are in a position to make up the difference for destitute patients.

The customary treatment of AIDS consists of a cocktail of three drugs. Cipla produces an
all-in-one pill called Triomune which contains all three substances (Lamivudine,
stavudine and Nevirapine), something difficult elsewhere because the three patents are
held by different companies. One more popular fixed dose combination is there, with the
name Duovir-N. This contains Lamivudine, Zidovudine and Nevirapine.

AHF Campaign
In August 2007 Cipla was confronted by a US-based group known as AIDS Healthcare
Foundation (AHF) with a well-funded campaign of full-page ads in various Indian
newspapers suggesting Cipla was pricing an AIDS drug called Viraday higher in India
than in Africa.

In response to AIDS Healthcare Foundation's claims Cipla issued a short statement

pointing out that the company had not sold a single pack of Viraday in Africa. It also
underlined that Cipla sells its other AIDS drugs to the Indian government at the same
prices it sells to Africa, and questioned AHF's agenda.

According to AHF and news reports, Cipla threatened a defamation lawsuit against the
organization.

On August 21, 2007 the Indian Monopolies and Restrictive Trade Practices Commission
(MRTPC) announced that it would look into Cipla's pricing and claims made by AHF.
On September 1, 2007, The Economic Times of Delhi wrote that:

It has now emerged that Aids Healthcare Foundation (AHF), the US-based NGO that
accused Cipla of over pricing anti-AIDS drug, Viraday, in India is part funded by
American anti-AIDS drug maker Gilead and the NGO's treasurer is a senior Gilead
executive.

This is largely the reason why foreign and Indian NGOs such as Medicins Sans
Frontieres (MSF), Delhi Network of Positive People (DNP+), Indian Network of Positive
People (INP+), Sahara and others refused to be part of AHF's anti-Cipla campaign.
History

Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire
of nationalism was kindled in him when he was 15 as he witnessed a wanton act of
colonial highhandedness. The fire was to blaze within him right through his life.

In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got
admission in Berlin University as a research student of "The Technology of Barium
Compounds". He earned his doctorate three years later.

In October 1927, during the long voyage from Europe to India, he drew up great
plans for the future. He wrote: "No modern industry could have been possible without
the help of such centres of research work where men are engaged in compelling
nature to yield her secrets to the ruthless search of an investigating chemist." His
plan found many supporters but no financiers. However, Dr Hamied was determined
to being "a small wheel, no matter how small, than be a cog in a big wheel."

Cipla is born

In 1935, he set up The Chemical, Industrial & Pharmaceutical Laboratories, which

came to be popularly known as Cipla. He gave the company all his patent and
proprietary formulas for several drugs and medicines, without charging any royalty.
On August 17, 1935, Cipla was registered as a public limited company with an
authorised capital of Rs 6 lakhs.

The search for suitable premises ended at 289, Bellasis Road (the present corporate
office) where a small bungalow with a few rooms was taken on lease for 20 years for
Rs 350 a month.

Cipla was officially opened on September 22, 1937 when the first products were
ready for the market. The Sunday Standard wrote: "The birth of Cipla which was
launched into the world by Dr K A Hamied will be a red letter day in the annals of
Bombay Industries. The first city in India can now boast of a concern, which will
supersede all existing firms in the magnitude of its operations. India has lagged
behind in the march of science but she is now awakening from her lethargy. The new
company has mapped out an ambitious programme and with intelligent direction and
skillful production bids fair to establish a great reputation in the East. "

Mahatma Gandhi visits Cipla

Mahatma Gandhi visits Cipla (July 4th 1939)

 July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma
Gandhi, honoured the factory with a visit. He was "delighted to visit this Indian
enterprise", he noted later. From the time Cipla came to the aid of the nation gasping
Cipla is also the medicines
for essential only Indian during
company opposing
the SecondGilead's
World patent application
War, the company for has
its been among
blockbuster
the leadersanti-HIV
in the drug Viread in India.
pharmaceutical The hearing
industry for the patent case of Viread is
in India.
due in October. ... Says a head of an NGO, who did not participate in the anti-Cipla
campaign: “There is a conflict of interest in the campaign. AHF is funded by
multinational pharma companies. A senior Gilead executive is one of the directors of
AHF and the campaign choose to target Cipla for over pricing at a time when it is
fighting Gilead's patent case in India. There is a discomfort and many civil society groups
decided to stay away from the campaign.”

On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was
the last time the company ever recorded a deficit.

In 1942, Dr Hamied's blueprint for a technical industrial research institute was

accepted by the government and led to the birth of the Council of Scientific and
Industrial Research (CSIR), which is today the apex research body in the country.

In 1944, the company bought the premises at Bombay Central and decided to put up
a "first class modern pharmaceutical works and laboratory." It was also decided to
acquire land and buildings at Vikhroli. With severe import restrictions hampering
production, the company decided to commence manufacturing the basic chemicals
required for pharmaceuticals.

In 1946, Cipla's product for hypertension, Serpinoid , was exported to the American
Roland Corporation, to the tune of Rs 8 lakhs. Five years later, the company entered
into an agreement with a Swiss firm for manufacturing foromycene.

Dr Yusuf Hamied, the founder's son, returned with a doctorate in chemistry from
Cambridge and joined Cipla as an officer in charge of research and development in
1960.

In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the
manufacture of several steroids and hormones derived from diosgenin.