|Traded as||BSE: 500087
BSE SENSEX Constituent
CNX Nifty Constituent
|Founder(s)||Dr. K. A. Hamied|
|Headquarters||Mumbai, Maharashtra, India|
|Key people||Y. K. Hamied, Chairman
Subhanu Saxena (CEO)
|Products||Pharmaceuticals and diagnostics|
|Revenue||85.01 billion (US$1.3 billion) (2012-13)|
|Net income||20.95 billion (US$320 million) (2012-13)|
|Total assets||116.58 billion (US$1.8 billion) (March 2013)|
|Total equity||90.19 billion (US$1.4 billion) (March 2013)|
Cipla Limited is a pharmaceutical company based in Mumbai, India. Cipla makes drugs to treat cardiovascular disease, arthritis, diabetes, weight control, depression and many other health conditions.
It was founded by Dr. Khwaja Abdul Hamied as 'The Chemical, Industrial & Pharmaceutical Laboratories' in 1935 in Mumbai.
The name of the Company was changed to 'Cipla Limited' with effect from 20 July 1984, wherein the word Cipla came from the first letters of each word in the old name 'The Chemical, Industrial & Pharmaceutical Laboratories'.
In the year 1985, US FDA approved the company's bulk drug manufacturing facilities.
In 1994, Cipla launched Deferiprone, the world’s first oral iron chelator.
In 2001, Cipla offered medicines (antiretrovirals) for HIV treatment at a fractional cost (less than $350 per year per patient).
In 2012, the company slashed prices of three life-saving cancer drugs by 50-64%.
In 2013, it increased its stake in its South African joint venture CIPLA Medpro from 50% to 100% stake for INR 27 billion to strengthen its position in the African continent. Cipla Medpro is the third largest South African pharmaceutical company and it was founded in 1993.
Cipla has 34 manufacturing units in 8 locations across India and has presence in 170 countries. Exports accounted for 52% of its revenue for FY 2012-13. Cipla cooperates with other enterprises in areas such as consulting, commissioning, engineering, project appraisal, quality control, know-how transfer, support, and plant supply.
Products and services
Cipla manufactures a range of pharmaceutical and personal care products. The company offers active pharmaceutical ingredients (APIs); and formulations in therapeutic areas, such as allergy, analgesic, anti malarial, anti-infectives, cardiology, dermatology and cosmeceuticals, diabetology, gastroenterology, HIV-AIDS, hormones and steroids, iron chelators, musculoskeletal, neuropsychiatry, nutritional and ophthalmic products, oncology, respiratory, urology, and women’s health in various dosage forms. It also provides veterinary products for various animals, including companion, equine, general care, live stock, and poultry. In addition, the company offers inhaled medication and devices, such as dry powder inhalers, single-dose capsule and multi-dose dry powder inhalers, breath-actuated metered dose inhalers, non-static spacers, baby and infant masks, and nasal sprays. Further, it provides consulting, commissioning, plant engineering, and technical know-how transfer and support services.
Cipla has over 2000 products in 65 therapeutic categories available in over 40 dosage forms. Its key products include the following drugs - Escitalopram (anti-depressant), Lamivudine, Fluticasone propionate.
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 percent of HIV/AIDS patients undergoing antiretroviral therapy worldwide take Cipla drugs.
Indian law from 1972 until 2005 allowed no (end-product) patents on drugs, and provided for compulsory licensing, Cipla was able to manufacture medicines which enjoyed patent monopoly in certain other countries (particularly those where large, multinational pharmaceutical companies are based).
Cipla also pioneered a three-in-one tablet called Triomune containing a fixed-dose combination (FDC) of three ARVs (Lamivudine, stavudine and Nevirapine), something difficult elsewhere because the three patents were held by different companies. Another popular fixed-dose combination is produced under the name Duovir-N. This contains Lamivudine, Zidovudine and Nevirapine. Cipla manufactures generic versions of many of the most commonly prescribed anti-retroviral medication in the market, and is a highly capable manufacturer in its own right. This innovation made ARVs far more accessible and easy-to-take for patients everywhere, but particularly in poor- and middle-income countries, where the vast majority of people on anti-retroviral therapy (ART) now take such combination pills.
Cipla was among the first companies to register AIDS drugs under the US relief program PEPFAR. It has also been a major supplier of ARVs to the Clinton Foundation's HIV/AIDS Initiative, which has negotiated low-cost drug supplies for numerous developing countries.
Through its price offers to developing country governments and leading NGOs such as Doctors Without Borders (MSF) and Oxfam, along with its keen participation in PEPFAR, the Global Fund, the Clinton Foundation's HIV/AIDS Initiative and other major donor programs fighting HIV/AIDS in Africa and elsewhere in the resource-poor world.
Antiflu and Virenza
In December 2008, Cipla won a court case in India allowing it to manufacture a cheaper generic version of oseltamivir, marketed by Hoffmann-La Roche (Roche) under the trade name Tamiflu, under the Cipla tradename Antiflu. In May 2009, Cipla won approval from the World Health Organization certifying that its drug Antiflu was as effective as Tamiflu, and Antiflu is included in the World Health Organization list of prequalified medicinal products.
Cipla announced that Oseltamivir 75 mg capsules marketed as `Antiflu` by the company has been included in the World Health Organization (WHO) list of prequalified medicinal products (PMP).
Oseltamivir is indicated for use in the treatment of influenza A (H1N1) infection commonly known as swine flu.
The New York Times reported that the government of Saudi Arabia purchased stockpiles of Antiflu in preparation for Hajj in late 2009, fearing an outbreak of flu among Hajjis arriving from all parts of the world.
The firm announced the launch of the drug under the name "Antiflu" on 11 November 2009 to be sold as a category X drug, strictly under prescription.
In May 2012, Cipla made headlines by slashing prices on several cancer drugs. The Wall Street Journal quoted Cipla chairperson Yusuf Hamied as saying: "We had taken the lead to provide affordable medicine for AIDS and I think the time has now come -- 10 years later -- when we do a similar thing for cancer." The revised prices averaged roughly 75% less than the previous ones, and Hamied announced plans to similarly reduce prices on the full range of cancer drugs made by Cipla. The move was expected to prompt significant price drops from other producers, providing access to medicine and saving many millions of cancer patients unnecessary suffering and/or death.
Cipla also has a product range comprising antibiotics, anti-bacterials, anti-asthmatics, anthelmintics, anti-ulcerants, oncology, corticosteroids, nutritional supplements and cardiovascular drugs. The company has at least nine different prescription drugs registered with the US FDA. Active in the anti-bacterial and anti-asthmatic segments, Cipla was the first in Asia to launch a non-CFC metered dose inhaler.
In a September 2011 article, The New York Times discussed Cipla's efforts to radically lower costs of biotech drugs for cancer, diabetes and other noncommunicable diseases, referencing the leading role the company had played in getting low-cost AIDS drugs to the developing world:
- In retrospect, the battle 10 years ago over AIDS medicines was a small skirmish compared with the one likely to erupt over cancer, diabetes and heart medicines. The AIDS drug market was never a major moneymaker for global drug giants, while cancer and diabetes drugs are central to the companies’ very survival.
The equity shares of Cipla are listed on the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty. Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.
As on 30 September 2013, the promoter group, Dr. Y. K. Hamied and his family, held around 36.80% equity shares in Cipla. Around 148,000 individual shareholders held approx. 18.67% of its shares. LIC is the largest non-promoter shareholder with approx. 6.45% shareholding in the company by the end of September 2013.
|Shareholders (as on 30-September-2013)||Shareholding|
|Foreign Institutional Investors (FII)||23.78%|
|Private Corporate Bodies||05.11%|
|Mutual Funds and UTI||04.11%|
As on 31 March 2013, the company had 27,562 employees (out of which 2,012 were women (7.30%) and 3 were employees with disabilities (0.01%)). During the FY 2012-13, the company incurred INR 10.36 billion on employee benefit expenses.
Awards and recognitions
- In April 2013, former US President Bill Clinton praised Cipla and other Indian generic drug companies for their contribution in the fight against HIV/AIDS and noted that their cheap drugs saved millions of lives.
- In 2012, Cipla received the Thomson Reuters India Innovation Award.
- Cipla won Dun & Bradstreet American Express Corporate Awards for 2006.
- In 2005, Forbes included Cipla in the 200 'Best under a billion' list of best small Asian companies.
- In 1980, Cipla won Chemexcil Award for Excellence for exports.
- In July 1939, Mahatama Gandhi (later conferred with the title "Father of the Nation" by Government of India) visited Cipla.
Cipla established a hospice named 'Cipla Palliative Care and Training Centre' for terminally ill cancer patients in Pune in 1997. The patient in this hospice get all medicines and services free of cost. The company, in its Annual report for FY 2012-13, informed that it has cared for over 8,500 patients in last 16 years.
- Sale of emergency pregnancy termination pills over-the-counter:
In August 2007, Cipla launched pregnancy termination pill 'i-pill'. The morning-after pill was sold as the easiest way to avoid unwanted pregnancies, but drew criticism as it was sold over-the-counter (hence not requiring a medical prescription) and for the probable side effects. The drug contained twice the amount of main ingredient ‘levonorgestrel’ as compared to similar drugs such as Norlevo (Win Medicare) and Ecee2 from German Remedies. One industry specialist noted that there was no evidence across the world of the drug being safe for females below 16 years of age. An industry insider, who also has products in oral contraception, said the amount of active ingredient in the pill could cause problem in women with high blood pressure, heart disease. The same analyst noted that the drug was not safe for people with problems such as liver disease, diabetes, migraines or asthma. Hence, if the drug was distributed over the counter then there was no practical way to prevent people with aforementioned issues or people below 16 years from buying the tablet.
- Sale of generic drugs:
Generic pharmaceutical companies, like Cipla, are criticised by original drug manufacturers as they (generic pharma companies) sell the products developed by others, without paying anything to the developers. The developers invest a lot of money in research and development, clinical trials and marketing of the products. The medicine patent laws in many developing countries, like India, allow generic pharma companies to produce branded medicines. On average, the cost of a generic drug is 80 to 85 percent lower than the brand name product. This leads to criticism of both the countries' patent laws and the generic companies as it denies the original manufactures of their share of profits, a part of which they could have used for research and development of advanced medicines. The company in its reply said that the population in the third world cannot afford the prices of medications that are prevailing in the first world, and therefore medicines should be made available at affordable prices.
- "Annual Report 2012-13". Cipla. 22 August 2013. Retrieved 2 November 2013.
- "Business Responsibility Report 2012-13". Cipla. 15 July 2013. Retrieved 2 November 2013.
- "Table 4-12: Top '50' Companies by Market Capitalisation as on March 31, 2013". NSE India. 31 March 2013. Retrieved 2 November 2013.
- "About us - History". Cipla Limited. Retrieved 3 November 2013.
- "Company History - Cipla Ltd.". Economic Times. Retrieved 3 November 2013.
- "Company Profile - Cipla Limited". IndiaInfoline.com. Retrieved 3 November 2013.
- "Indian drug company offers cheap AIDS drugs". USA Today. 19 June 2001. Retrieved 3 November 2013.
- "Cipla again cuts cancer drug prices by up to 64%". Times of India. 9 November 2012. Retrieved 3 November 2013.
- "Cipla completes buyout of Cipla Medpro for Rs 2,707 crore". Economic Times. 16 July 2013. Retrieved 4 November 2013.
- "Cipla Limited: Revenue and Financial Data". Hoovers. Retrieved 2 November 2013.
- "Cipla in the pink of health". Business Standard. 25 September 2013. Retrieved 5 November 2013.
- "cipla ltd (CIPLA:Natl India)". Business Week. Retrieved 7 November 2013.
- "Research and Innovation". Cipla Limited. Retrieved 4 November 2013.
- "AIDS Healthcare Foundation Campaign Challenges Cipla Over Drug Pricing in India". PR Newswire. 8 August 2007. Retrieved 4 November 2013.
- "Cipla gets USFDA nod for HIV drug". Internationaldrugmart.com. 5 May 2009. Retrieved 4 November 2013.
- "BioSpectrum - Pharma - BioSpectrumAsia Top 20, Cipla, 4". Biospectrumasia.com. Retrieved 2010-07-16.
- Generic HIV Medicine List
- "WHO - Antiretroviral therapy".
- "Ciplas anti-flu drug gets nod", Times of India
- New York Times
- Ahmed, Rumman (4 May 2012). "India's Cipla Cuts Cancer Drug Prices by 75%". The Wall Street Journal.
- "Indian drug giant Cipla slashes cancer drug prices - NY Daily News". Daily News (New York).
- US FDA
- Harris, Gardiner (18 September 2011). "China and India Making Inroads in Biotech Drugs". The New York Times.
- "Cipla Limited". BSEindia.com. Retrieved 2 November 2013.
- "Scripwise Weightages in S&P BSE SENSEX". BSE India. Retrieved 2 November 2013.
- "NTPC Limited". NSE India. Retrieved 2 November 2013.
- "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 2 November 2013.
- "CIPLA - Shareholding belonging to the category : "Public and holding more than 1% of the Total No.of Shares"". MoneyControl.com. 30 September 2013. Retrieved 4 November 2013.
- "Bill Clinton praises pharma companies Ranbaxy and Cipla for fight against AIDS". Economic Times. 11 April 2013. Retrieved 4 November 2013.
- "Pharmaceutical sector award". Dun & Bradstreet. 10 September 2006. Retrieved 3 November 2013.
- "Asian Paints, Cipla in Forbes list". Economic Times. 17 November 2005. Retrieved 3 November 2013.
- "The Father of the Nation visits Cipla on 4th July 1939". Cipla. Retrieved 3 November 2013.
- "Palliative Care". Cipla Limited. Retrieved 3 November 2013.
- "Cipla Palliative Care and Training Centre, Pune". Cipla Limited. Retrieved 3 November 2013.
- "In India, a quest to ease the pain of the dying". The New York Times. 11 September 2007. Retrieved 3 November 2013.
- "Cipla Palliative Care Centre Launches New Counseling Helpline". Financial Express. November 2011. Retrieved 3 November 2013.
- "Cipla rises on morning-after pill". Hindustan Times. 5 October 2007. Retrieved 3 November 2013.
- "Cipla Launches i-pill". Financial Express. Retrieved 3 November 2013.
- "‘i-pill’ by Cipla draws criticism from experts". Financial Express. 27 October 2007. Retrieved 3 November 2013.
- "US groups criticise India's drug, tech, farm policies". Rediff.com. 14 March 2013. Retrieved 4 November 2013.
- "The Treasure of Mumbai". Wired Magazine. December 2006. Retrieved 4 November 2013.
- "Facts about Generic Drugs". U.S. Food and Drug Administration. 19 September 2012. Retrieved 4 November 2013.
- "Indian Generic Drug Maker Targets Sad Americans". biohealthinvestor.com. 3 January 2007. Retrieved 4 November 2013.
- Official website
- Cipla - The Human Care Company
- Facts about Generic Drugs at U.S. Food and Drug Administration
- Cipla at Times of India
- Cipla at Bombay Stock Exchange
- Cipla at National Stock Exchange of India