Financial Report on CIPLA (Chemical Industrial & Pharmaceutical Laboratories) LTD.

Made by- Akash Katiyar

CIPLA was founded in 1935 by Dr. KA Hamied. The company has been instrumental in providing low-
cost generic drugs in INDIA for over 85 years now. It has a presence across 80+ countries around the
world and sells 1500 products in different categories in 50+ dosage forms.
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CSR Activities
 CONCLUSION

The company has also been instrumental in bringing down the cost of antiretroviral therapy got
HIV/AIDS to less than $1 per day in 2001. And is today the largest producer of antiretroviral drugs
in the world.

The Company’s Operating Segments -

The Company’s Operating Segments focuses on human-biology segments like Respiratory

Gastrointestinal Antiretroviral CNS (Central Nervous System) Onocology Cardiovascular and Others.

According to financials of auduted financials…. Their largest contribution of 25% comes from
Respiratory. 15% comes from Gastrointestinal. 10% comes each from Anitretroviral and CNS.

8% comes from Oncology & 7% from Cardiovascular and 25% from others.

Cipla comes at No. 3 in the Indian Pharma segment. It is the market leader in the respiratory and
urology spaces with a 23.1% and 14.6% market share respectively.

In the Indian generics business, Cipla serves in over 15000 pin codes with 5500+ stockists. 150+
brands and 11+ dosage forms.

As of Sept 21, the company filled 256 new drug applications.

In Q2FY22 operating segments, Respiratory contribution in their financials have been increasing as
per their filed financials. Now it is 33%.

Its emerging brands include Cipladine, CoCip, Prolyte ORS and Maxirich.

The company is also provided Remdesivir, Rapid antigen test and Anti-body testing kit.

The global pharma industry is expected to reach a market size of $1.6 trillion with an overall CAGR
oF 3-6%. Within this, the emerging nations are 7-10%.

The Indian pharma sector is responsible for over 50% of vaccine production in the world. 40% of
generics demand in USA, 25% of all medicines in the UK. The indian pharma sector is expected to
reach 130 billion from 42 billion dollars in 2030.

The reason behind this are following-

1. Low cost of production and R&D in India.

2. Rising penetration of pharmacies both online and offline.

3. Rising income and health insurance penetration.

4. Increasing FDI in pharma sector.

5. Govt policy support in the form of pharma PLI schemes and making of Drug Parks.

In financials, We have only taken those pharma companies for comparison with CIPLA which focuses
on end formulations and generics.
 Strength

CIPLA has the 3 biggest strengths -

The biggest strenght of CIPLA is its focus on the Indian Market. Many leading players like Sun
Pharma, Dr. Reddy’s and other have the USA as their prime market.

CIPLA’s focus is to capture pharma products as much as Indian market to grow. This can be strength.

2nd biggest strength is that CIPLA has a diversified product portfolio.

3rd strength is company’s biggest therapeutic segment is respiratory. In the last 2 years, the world
saw the destruction by COVID 19. Also, respiratory conditions are rising due to the rise of air
pollution. And you can see that 33% of revenue comes from the respiratory so growth in revenue is
immense for Cipla.

Weakness of CIPLA..

There are a few weaknesses….

CIPLA faces competition with leading pharma giants like Pfizer, Roche.. They have technology and
R&D advantage over CIPLA. They have developed low-cost manufacturing. to survive for CIPLA, can
be difficult.

A major weakness is its dependence on china for sourcing raw materials. Thus the company is
vulnerable to supply chain disruption.

Third is NPPA, under the Government of India to control prices of drugs and pharma products. In
2003, CIPLA recieved notice of demand from the NPPA, to pay 1,736 crore rupees. This case is still
pending in courts. In this ecosystem, NPPA controls the prices of drugs and pharma products that
they to their customers. So to earn this market is difficult.

Final Conclusion - To sum up, the average life expectancy of humans and scientific breakthroughs
are rising. So the growth of the pharma sector is expected to grow. So, Cipla has potential in low-
cost manufacturing in emerging markets like INDIA and SOUTH AFRICA.
That’s all from my side…

Thank You.