I am addressing you with humility and great pride as we celebrate the 80th anniversary of Cipla ...

198 Pages·2016·1.82 MB·English

Contents
From the Chairman 2
Directors’ Report 4
Annexures to the Directors’ Report 22
Report on Corporate Governance 60
Independent Auditors’ Report 76
Balance Sheet 82
(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:47)(cid:82)(cid:86)(cid:86) 83
Cash Flow Statement 84
Notes to the accounts 86
Salient Features of Financial Statements of Subsidiaries/Associates/Joint Ventures 129
Independent Auditors’ Report on the Consolidated Financial Statements 133
Consolidated Balance Sheet 138
(cid:38)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:47)(cid:82)(cid:86)(cid:86) 139
Consolidated Cash Flow Statement 140
Notes to the Consolidated Accounts 142
Ten-Year Highlights Inside Back Cover
Cautionary Statement
Certain statements in this annual report may constitute “forward-looking statements”. These forward statements are subject
(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:86)(cid:15)(cid:3)(cid:88)(cid:81)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:76)(cid:909)(cid:72)(cid:85)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:86)(cid:88)(cid:74)(cid:74)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)
by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully
implement our strategy, our growth and expansion plans, our ability to obtain regulatory approvals, technological changes, cash
(cid:565)(cid:82)(cid:90)(cid:3)(cid:83)(cid:85)(cid:82)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:83)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:86)(cid:17)
Founder Global Chief Operating (cid:53)egistered O(cid:605)(cid:70)e
Dr. K. A. Hamied O(cid:605)(cid:70)er Cipla House
(1898-1972) Mr. Umang Vohra*** Peninsula Business Park,
Ganpatrao Kadam Marg,
Chairman Global Chief (cid:41)inan(cid:70)ial Lower Parel,
Dr. Y. K. Hamied O(cid:605)(cid:70)er Mumbai – 400 013
Mr. Kedar Upadhye www.cipla.com
(cid:57)i(cid:70)e(cid:16)Chairman Tel.: [phone]
Mr. M. K. Hamied Co(cid:80)pan(cid:92) (cid:54)e(cid:70)retar(cid:92)
Corporate Identity No.
Mr. Mital Sanghvi
(cid:48)anaging (cid:39)ire(cid:70)tor (cid:9) Global L24239MH1935PLC002380
Chief (cid:40)(cid:91)e(cid:70)uti(cid:89)e O(cid:605)(cid:70)er Auditors
Share Transfer Agents
Mr. Subhanu Saxena* V. Sankar Aiyar & Co.
R. G. N. Price & Co. Karvy Computershare
(cid:58)hole(cid:16)time (cid:39)ire(cid:70)tor Private Limited
Mr. S. Radhakrishnan Cost Auditor (Unit: Cipla Limited)
Karvy Selenium Tower B,
Mr. D. H. Zaveri
Plot No. 31 & 32, Gachibowli,
(cid:40)(cid:91)e(cid:70)uti(cid:89)e (cid:39)ire(cid:70)tor
Financial District, Nanakramguda,
Ms. Samina Vaziralli** (cid:54)e(cid:70)retarial Auditor
Serilingampally, Hyderabad,
BNP & Associates
Telangana – 500 032
Independent (cid:39)ire(cid:70)tors
Tel.: [phone]
Mr. Ashok Sinha
Dr. Peter Mugyenyi
Mr. Adil Zainulbhai
* upto 31st August 2016
Ms. Punita Lal
** Executive Vice-Chairman w.e.f. 1st September 2016
Ms. Naina Lal Kidwai *** (cid:48)anaging (cid:39)irector an(cid:71) (cid:42)(cid:79)oba(cid:79) Chief Executive (cid:50)(cid:605)cer w.e.f. 1st September 2016
FROM THE CHAIRMAN
Dear Shareholders
DR. Y.K. HAMIED
Chairman
I am addressing you with humility and great
pride as we celebrate the 80th anniversary
of Cipla. We have completed eight decades
of valuable service in healthcare, not only in
India, but worldwide. This year also marks
my completing over 55 years of active
association with Cipla. As long as I can add
positive value to the company, whether
scienti(cid:564)c or business-related, I will continue
to do so and be with you.
2 Cipla Annual Report 2015-16
Our pharma industry looks
after the healthcare needs of
our nation and that of many
other countries. We are a
major producer and supplier
of affordable drugs worldwide.
Many countries are dependent
on India for their drugs. Now
that our Indian pharma industry
is at the forefront of healthcare,
the Government should be fully
supportive. Any further dilution
in the Patents Act will adversely
affect not only India but several
countries which depend on India
for their medicines.
Even though we are setting up
You will appreciate that no Even as I conclude I must
manufacturing bases abroad,
India will still be our major company can manufacture re-emphasize that Cipla will
production base. Thanks to our everything. We have therefore continue to serve patients across
strong brand equity and the entered into many licensing the world with the same passion
relentless drive of our sales agreements with other and commitment that we have
since our inception some 80
and marketing people, Cipla is companies. This is in line with
years back. The best is yet to
the preferred choice of doctors our mission to provide access to
come for your company. I am
in many key therapeutic areas, affordable essential medicines.
confident that going forward the
whether they are specialists or
We have a separate Cipla Global journey of Cipla will build on the
general practitioners, whether
they practice in urban or rural Access Program (CGA), which legacy we have and create a new
India. To maintain our leadership concentrates on four key therapy future of more hope, greater
involves hard and sustained work areas. These are HIV/AIDS, success and deeper purpose. As
at all levels. Malaria, Multiple Drug Resistant we see a transformation to the
next generation of the Hamied
TB and Reproductive Health. Our
So how do we stay ahead as a family, I have no doubt that
aim is to reach out to 80 million
company? in Samina Vaziralli we have a
patients in these four therapies
trustee who will preserve, inspire
The only way is by investing in by 2020.
and enhance the spirit that we
R&D, in innovation and in our
In keeping with our strategy call Cipla.
people. For the past few years,
for the future, we launched a
we have put in a great deal of
effort, time and money in these new division called Cipla New
critical areas; the results of this Ventures (CNV) to build newer
will be evident in the near future. innovation-led businesses. This
Last year, we spent over 6% of also involves manufacturing and
our turnover in R&D. The projects marketing biotech products for Y. K. Hamied
taken up are all carefully planned cancer, respiratory, diabetes and
and accountable. We have auto-immune diseases.
invested in newer technologies
like biotech, stem cells, nano
technology, continuous flow
chemistry.Collectively, we
must build the best-in-class
organisational capacity to make
our aspired future come to life.
Cipla Annual Report 2015-16 3
Directors’ Report
The Directors take pleasure in presenting the Eightieth Annual Report of the Company along with the audited
(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:22)(cid:20)st March 2016.
Finan(cid:70)ial Summary ` in crore
Year ended Year ended
31st March 2015 31st March 2016
Standalone Consolidated (cid:98) Standalone Consolidated
10373 11620 Gross total revenue 12445 14067
1540 1654 (cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:69)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91) 1740 2007
1181 1181 (cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85) 1398 1506
5330 5412 Surplus brought forward from last balance sheet 6277 6358
– – Adjustment of tax on dividend of previous year 13 13
6511 6593 (cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:83)(cid:85)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) 7688 7877
(cid:98) (cid:98) Appropriations: (cid:98) (cid:98)
161 161 Dividend 161 161
33 33 Tax on dividend 33 33
– – Transfer to general reserve – –
40 41 Adjustment of depreciation – –
6277 6358 Surplus carried forward 7494 7683
(cid:39)i(cid:89)idend
The Directors recommend a dividend of `2 per equity share (100%) for the year 2015-16. The dividend, if sanctioned
at the Annual General Meeting, will be paid to those members whose names appear in the Company’s Register of
Members on Wednesday, 14th September 2016. In respect of shares held in dematerialised form, the dividend will
(cid:69)(cid:72)(cid:3)(cid:83)(cid:68)(cid:92)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:564)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:87)(cid:68)(cid:76)(cid:79)(cid:86)(cid:3)(cid:73)(cid:88)(cid:85)(cid:81)(cid:76)(cid:86)(cid:75)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:49)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:39)(cid:72)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:47)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)
and Central Depository Services (India) Limited.
4 Cipla Annual Report 2015-16
Directors’ Report
contd.
MANAGEMENT DISCUSSION AND ANALYSIS: 2015-16
Global (cid:37)usiness (cid:53)e(cid:89)ie(cid:90)
Sales and Other Income With a vibrant presence globally, rating is the highest assigned in
(Standalone) Cipla is well-poised for growth Fitch’s rating scale and indicates
` in crore that advances its goal of ensuring the highest degree of safety
13000 (cid:68)(cid:909)(cid:82)(cid:85)(cid:71)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:68)(cid:79)(cid:87)(cid:75)(cid:70)(cid:68)(cid:85)(cid:72)(cid:3) regarding timely servicing of
12500
12000 for all. (cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:82)(cid:90)(cid:72)(cid:86)(cid:87)(cid:3)
11500 credit risk.
11000 To build a concrete foundation for
10500 sustainable long-term growth, the No material changes and
10000
9500 Company is investing heavily in commitments have occurred after
98050000 its pipeline, making choices with the close of the year till the date
8000 respect to its operating model (cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:68)(cid:909)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
7500
7000 in certain markets and exploring (cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)
6500 initiatives to simplify the business.
6000
5500 (cid:55)(cid:75)(cid:72)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3) India
5000
4500 has been important for the As one of India’s leading
4000 Company to drive execution of
3500 pharmaceutical companies,
3000 these choices and enhance the (cid:38)(cid:76)(cid:83)(cid:79)(cid:68)(cid:3)(cid:76)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:86)(cid:87)(cid:85)(cid:82)(cid:81)(cid:74)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:88)(cid:79)(cid:564)(cid:79)(cid:79)(cid:3)
2500 resilience of its business model.
2000 its commitment to provide modern
11500000 The Company’s revenue from (cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:909)(cid:82)(cid:85)(cid:71)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:70)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)
500 operations on a consolidated basis patients. This year, despite pricing
0
07 08 09 10 11 12 13 14 15 16 (cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:24)(cid:16)(cid:20)(cid:25)(cid:3) challenges and the impact of
amounted to `13,678 crore against a weak monsoon, Cipla’s domestic
`11,345 crore in the previous year, revenues for its prescription
recording a growth of 20.6%. The business grew by 16% compared
income from operations for the to the industry growth of 14%,
Company's domestic business as per IMS Health data.
increased by 5.9%, from `4,825 The India business contributed
(cid:70)(cid:85)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3) ~40% to overall Company
to `(cid:24)(cid:15)(cid:20)(cid:20)(cid:20)(cid:3)(cid:70)(cid:85)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) revenues, with new products
year under review. Total exports contributing 4.5% of total India
increased by 36.4% during the business revenues.
year to `8,261 crore. During The prescription business
the year under review, EBIDTA accounted for 81% of India
margin reduced by 0.8 percentage business revenues and market
points. This was primarily due share for this segment currently
to the change in product mix, stands at 5.3%. The Company grew
higher investments in research faster than the market in Anti-
and development, and ongoing infectives, Gastrointestinal and
complexity reduction initiatives. Urology. The respiratory business
(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3) saw strong uptake with over 20%
27.5% to `1,506 crore from `1,181 growth in the COPD portfolio.
(cid:70)(cid:85)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3)
Cipla continues to focus on
India Ratings and Research Private high-value opportunities to build
Limited, a Fitch Group Company, out its specialty portfolio,
assigned a Long-Term Issuer through a mix of in-licensing
Rating of IND AAA with a stable and in-house innovation and
outlook to the Company. The development. In-licensing gained
Cipla Annual Report 2015-16 5
Directors’ Report
contd.
momentum in FY 2015-16 with force productivity with the and distribution arrangement with
6 deals executed in oncology, rollout of Customer Relationship Teva Pharmaceuticals (Pty) Ltd, an
respiratory and dermatology Management (CRM) and Sales (cid:68)(cid:605)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:55)(cid:72)(cid:89)(cid:68)(cid:3)(cid:51)(cid:75)(cid:68)(cid:85)(cid:80)(cid:68)(cid:70)(cid:72)(cid:88)(cid:87)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)
segments. The Company also Force Automation (SFA) systems. Industries Ltd., has gained traction
initiated several high value through FY 2015-16 with strong
Through this, Cipla aims to grow
innovation projects, of which a few performance on products such as
above market rate of growth and
are likely to be commercialized in Copaxone, further cementing the
strengthen leadership position
FY 2016-17. in priority therapy areas in the Company’s status as a preferred
With the successful launch Indian market. “Partner of Choice”. Cipla has also
of Sofosbuvir in India for the introduced low cost vaccines in
treatment of Hepatitis-C, Cipla South Afri(cid:70)a the South African market through
has expanded access to the drug an exclusive agreement with the
Cipla is one of the largest
with nearly 10,000 patients being Serum Institute of India. This is in
pharmaceutical companies in
treated under the brand name line with the Company’s goal to
South Africa, with a private
(cid:43)(cid:72)(cid:83)(cid:38)(cid:89)(cid:76)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:564)(cid:85)(cid:86)(cid:87)(cid:3)(cid:20)(cid:21)(cid:3)(cid:80)(cid:82)(cid:81)(cid:87)(cid:75)(cid:86)(cid:17)(cid:3) advance healthcare for all in
market share of more than 5%.
Cipla continues to build out its South Africa.
South Africa contributed 11.5%
Hepatitis franchise in order to
to the overall revenues on a Cipla also won Government
improve access to breakthrough
consolidated basis. The business tenders in antiretrovirals (ARV),
therapies for patients with
however was impacted due to respiratory and newer areas such
HepCvir + Ledipasvir / Daclatasvir
the depreciation of the South as mental health, cardiovascular
combinations.
African Rand in FY 2015-16. In and women’s health categories,
Cipla also entered new areas local currency terms, South Africa (cid:68)(cid:70)(cid:75)(cid:76)(cid:72)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:564)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
through a partnership model – business revenue has grown at tender business over the previous
Cutisera in cosmetology, Nasovac ~25% in FY 2015-16 against the year. The newly set up
S in vaccines and Reteplase in the previous year. Cipla’s private state-of-the-art distribution centre
Anti-Thrombolytic segment. market business has grown at 14% facility has doubled the Company’s
In the coming years, the for the same period, with market existing capacity and conferred
domestic business will continue leadership in the Respiratory, competitive advantage by helping
to focus on enhancing depth CNS and Oncology segments, and to improve customer service levels,
of portfolio in priority therapy contributes over 60% of South enhance compliance, and reduce
areas, and increasing sales Africa business revenue. The sales the cost of distribution.
6 Cipla Annual Report 2015-16
Directors’ Report
contd.
(cid:42)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:76)(cid:81)(cid:3)(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:86)(cid:3) (cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:76)(cid:93)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:72)(cid:564)(cid:81)(cid:72)(cid:71)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) institutional market. Both
(Standalone) portfolio, key development companies together had annual
and in-licensing projects, and revenues of over US$ 230 mn as of
(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:69)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:55)(cid:68)(cid:91) ` in crore
(cid:51)(cid:85)(cid:82)(cid:564)(cid:87)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:55)(cid:68)(cid:91) streamlined global organizational December 2015.
2100
structure, Cipla South Africa will
2000 This acquisition is aligned with
1900 continue to leverage synergies
Cipla’s global growth strategy
1800
from its international family. The
1700 to grow its presence in the US
1600 Cipla brand inspires trust and pharmaceutical market and
1500 has become a household name
1400 increase its position amongst
1300 among consumers, pharmacies, key pharmaceutical wholesalers
1200 prescribers and key opinion
1100 and retailers. Having its own
leaders. Going forward, several
1000 manufacturing base and supply
900 Sub-Saharan markets will also
chain will further strengthen
800 be covered by the South African
700 Cipla’s presence in the US and its
600 organization. commitment to make high quality
500
400 medication accessible to patients
300 North Ameri(cid:70)a in the country. Cipla’s strategy in
200
100 (cid:918)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:86)(cid:87)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:564)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) the US is to deliver its complex
0 year 2015-16, Cipla successfully generics and respiratory portfolio
07 08 09 10 11 12 13 14 15 16
completed the acquisition of of products.
two US-based entities, InvaGen The North American business
Pharmaceuticals Inc. and contributed 15% to overall
Exelan Pharmaceuticals Inc. in a revenues (including the impact
transaction valued at US$ 550 mn. of acquisitions) and recorded
InvaGen Pharmaceuticals is a high 117% growth for the year. Growth
volume generics business platform was driven primarily by the
that provides Cipla with a strong Company’s partnership with Teva
US-based manufacturing setup Pharmaceutical Industries Ltd. for
and access to large wholesalers/ Esomeprazole and the successful
retailers in the US. The platform launch of its own label products in
includes 42 approved ANDAs and the US market.
~30 pipeline products that are
Cipla currently has over 165
expected to be approved over
(cid:36)(cid:49)(cid:39)(cid:36)(cid:86)(cid:3)(cid:564)(cid:79)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:54)(cid:17)(cid:3)(cid:50)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:15)(cid:3)
(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:91)(cid:87)(cid:3)(cid:23)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:17)(cid:3)(cid:918)(cid:87)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:564)(cid:79)(cid:72)(cid:71)(cid:3)
the Company has approval for
(cid:24)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:564)(cid:85)(cid:86)(cid:87)(cid:16)(cid:87)(cid:82)(cid:16)(cid:564)(cid:79)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:86)(cid:3)
over 85.
which is expected to bring
tremendous value in the coming As Cipla scales its US business next
5-6 years. There are no material (cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:76)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:79)(cid:68)(cid:88)(cid:81)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:564)(cid:89)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)
overlaps in the business, and the seven products from the InvaGen
current portfolio and the pipeline pipeline and eight to ten products
is largely complementary to Cipla’s from Cipla’s pipeline, including
products. InvaGen Pharmaceuticals’ some in limited competition areas.
manufacturing footprint spans In parallel, the Company will
~350,000 sq.ft. of GMP area with continue to build on its successful
3 units located in Long Island, (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:79)(cid:68)(cid:88)(cid:81)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:564)(cid:85)(cid:86)(cid:87)(cid:16)(cid:87)(cid:82)(cid:16)
New York, and a total production (cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:76)(cid:909)(cid:72)(cid:85)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:76)(cid:70)(cid:86)(cid:3)
capacity of 12 billion tablets. such as Nexium and Pulmicort.
Exelan Pharmaceuticals is a sales Cipla has already established a
and marketing company with a strong US team which has been
focus on generic pharmaceuticals deeply involved in Cipla’s launch
for the government and of its own label products in the
Cipla Annual Report 2015-16 7