Cipla Limited (stylized as Cipla) is an Indian multinational pharmaceutical company headquartered in Mumbai. Cipla primarily focuses on developing medication to treat respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and various other medical conditions.[4] Cipla has 47 manufacturing locations across the world and sells its products in 86 countries. It is the third-largest drug producer in India.[5][6]

Cipla Limited
FormerlyChemical Industrial & Pharmaceutical Laboratories Ltd. (1935–1984)
Company typePublic
NSE NIFTY 50 Constituent
Founded1935 (89 years ago) (1935)
FounderKhwaja Abdul Hamied
HeadquartersMumbai, Maharashtra, India
Area served
Key people
ProductsPharmaceuticals and diagnostics
RevenueIncrease 22,753 crore (US$2.8 billion) (FY23)[1]
Increase 5,027 crore (US$630 million) (FY23)[1]
Increase 2,802 crore (US$350 million) (FY23)[1]
Total assetsDecrease 23,662.56 crore (US$3.0 billion)[2] (2020)
Total equityIncrease 15,763.00 crore (US$2.0 billion)[2] (2020)
Number of employees
SubsidiariesInvagen Pharmaceuticals

History edit

Cipla was founded in Mumbai in 1935 by Khwaja Abdul Hamied as the Chemical, Industrial & Pharmaceutical Laboratories.[7][8] In July 1984, the name of the company was changed to 'Cipla'.[8]

Upon Hamied's death in 1972, his son Yusuf Hamied, a Cambridge-educated chemist, took over the company.

In 1995, Cipla launched Deferiprone, the world's first oral iron chelator.[7]

In 1999, Cipla joined the Indian Pharmaceutical Alliance as a founding member in an effort to promote the development of generic drugs in India.[9][10] During the AIDS epidemic in the early 2000s, Hamied reverse-engineered a three-drug antiretroviral medication that was sold for about $12,000 per year to create a cheaper version that sold for $304 per year.[11] This drug was sold to African charities and governments. It is estimated that "at one time, as much as 40 percent of the AIDS patients in poor countries took Cipla drugs".[11]

During the avian flu pandemic in 2006, Cipla was able to reverse-engineer the drug Tamiflu and sell it for significantly lower prices.[9]

In 2013 Cipla acquired the South African company Cipla-Medpro. Its name was changed to Cipla Medpro South Africa Limited and was kept as a subsidiary.[12][13] At the time of the acquisition, Cipla-Medpro had been a distribution partner for Cipla and was South Africa's third-biggest pharmaceutical company.[12] The company had been founded in 2002 under the name Enaleni Pharmaceuticals Ltd.[14] In 2005, Enaleni bought all the shares of Cipla-Medpro, which had been a joint venture between Cipla and Medpro Pharmaceuticals, a South African generics company;[15] in 2008, it changed its name to Cipla-Medpro.[16] In September 2023, it was announced Cipla South Africa had acquired the Midrand-headquartered healthcare products manufacturer, Actor Pharma.[17]

In September 2015, Cipla acquired InvaGen Pharmaceuticals and Exelan Pharmaceuticals, two American pharmaceutical companies, for 555 million dollars.[18]

In 2019 Cipla entered digital therapeutics by partnering with Wellthy Therapeutics in India and Brandmed in South Africa.[19]

Products and services edit

Cipla sells active pharmaceutical ingredients to other manufacturers as well as pharmaceutical and personal care products,[20] including the anti-depressant escitalopram oxalate, lamivudine, and fluticasone propionate.[21] Cipla is the world's largest manufacturer of antiretroviral drugs.[20][22]

In July 2020, the company announced the introduction of Gilead Sciences' Remdesivir under the brand name CIPREMI in India after reaching a voluntary licensing agreement with the parent company and DCGI approval for "restricted emergency use" in COVID-19 treatment of patients in critical condition.[23][24][25]

Operations edit

Cipla has 34 manufacturing units in 8 locations across India and a presence in over 80 countries.[26][27] Exports accounted for 48% 4,948 crore (equivalent to 84 billion or US$1.1 billion in 2023) of its revenue for the 2013–14 fiscal year.[28] Cipla spent 517 crore (5.4% of their revenue) in the 2013–14 fiscal year on R&D activities.[28] The primary focus areas for R&D were development of new formulations, drug-delivery systems, and APIs. Cipla also cooperates with other enterprises in areas such as consulting, commissioning, engineering, project appraisal, quality control, know-how transfer, support, and plant supply.

During the FY 2013–14, the company incurred 1,285 crore (equivalent to 21 billion or US$260 million in 2023) on employee benefit expenses.[28]

According to Cipla's 2022-23 annual report, the company had over 25,000 employees, out of which 14.3% were women.[3]

Listings and shareholding edit

The equity shares of Cipla are listed on the Bombay Stock Exchange,[29] where it is a constituent of the BSE SENSEX index,[30] and the National Stock Exchange of India,[31] where it is a constituent of the CNX Nifty.[32] Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.[28]

As of December 31, 2022, the promoter group, Y. K. Hamied and his family, held around 33.61% equity shares in Cipla. Individual shareholders hold approximately 14.72% of its shares. SBI Mutual Fund, LIC etc. are the largest non-promoter shareholders in the Company.[33] In January 2024, Samina Hamied resigned from her position as the Executive Vice Chairperson of Cipla. She continued to serve the company as a non-executive director subject to rotational retirement.

Shareholders (as on 31-December-2022) Shareholding[34]
Promoter Group 33.61%
Mutual funds 14.09%
Financial Institution/Banks/Insurance 4.96%
Foreign Institutional Investors (FII) 28.39%
Corporate Bodies 0.53%
Individuals 14.72%
NRIs/OCBs 0.88%
Others 2.82%
Total 100.00%

Awards and recognitions edit

  • In 1980, Cipla won Chemexcil Award for Excellence for exports.[35]
  • In 2006, Cipla won Dun & Bradstreet American Express Corporate Awards.[36]
  • In 2007, Forbes included Cipla in the 200 'Best under a billion' list of best small Asian companies.[37]
  • In 2012, Cipla received the Thomson Reuters India Innovation Award.[38]
  • In 2015, Cipla stood third in the India's Most Reputed Brands (Pharmaceutical) list,[39] in a study conducted by BlueBytes,[40] a Media Analytics firm in association with TRA Research,[41] a brand insights organization (both part of the Comniscient Group).

Criticism edit

Emergency contraception edit

In August 2007, Cipla launched an emergency contraception drug "i-pill" sold over the counter,[42]. The drugged sparked controversy as it was available without prescription and contained a large amount of API per dosage.[43][44]

Generic drugs edit

In the late 1960s, Cipla began manufacturing a new, patented drug, propranolol, without the permission of the drug's patent holder, Imperial Chemical Industries; a protest was filed with the Indian government. The CEO of Cipla pressured the government of Indira Gandhi to change India's patent laws to eliminate patents that directly covered drugs, and instead to allow only patents that covered methods to make drugs[45] so that Cipla could produce low-priced generic drugs. Since then, Cipla has also produced a low-cost drug to treat HIV, and expanded operations into several developing countries.[46] The changes made led to criticism of both India's patent laws and Cipla.[47] India reinstated patents on drugs in 2005.[45]

See also edit

References edit

  1. ^ a b c Jaiswar, Pooja Sitaram (12 May 2023). "Cipla Q4 results: Consolidated PAT at ₹526 cr, declares dividend". Mint. Retrieved 14 July 2023.
  2. ^ a b "Cipla Consolidated Balance Sheet, Cipla Financial Statement & Accounts". Retrieved 28 July 2020.
  3. ^ a b "Business Responsibility Report 2013-14" (PDF). Cipla. 15 July 2014. Archived from the original (PDF) on 17 March 2015. Retrieved 17 September 2014.
  4. ^ "Know 10 largest Pharmaceutical Companies in India". Edu Dwar. Retrieved 28 July 2023.
  5. ^ "Cipla betting big on digitisation and emerging segments". The Economic Times. Retrieved 6 December 2022.
  6. ^ "Cipla betting big on digitisation and emerging segments". Financial Express. Retrieved 6 December 2022.
  7. ^ a b "About us - History". Cipla Limited. Archived from the original on 27 October 2015. Retrieved 3 November 2014.
  8. ^ a b "Company History - Cipla Ltd". Economic Times. Retrieved 3 November 2013.
  9. ^ a b Dec 22, PTI (22 December 2022). "Indian pharma sector set for 'volume to value leadership' journey in 2023". The Economic Times. ISSN 0013-0389. Retrieved 5 August 2023.{{cite news}}: CS1 maint: numeric names: authors list (link)
  10. ^ "Introducing IPA- Indian Pharmaceutical Alliance". IPA, Indian Pharmaceutical Alliance. Retrieved 5 August 2023.
  11. ^ a b "Epic saga of Cipla: How a swadeshi Robin Hood took on Big Pharma of the West". The Economic Times. 5 August 2023. ISSN 0013-0389. Retrieved 5 August 2023.
  12. ^ a b Jawani, Lohit (16 July 2013). "Cipla completes acquisition of South Africa's Cipla Medpro". VC Circle. Archived from the original on 15 March 2016. Retrieved 8 September 2016.
  13. ^ "Delists from JSE". Business Day Live. 2013. Retrieved 13 July 2013.
  14. ^ "Enaleni Pharmaceuticals Limited Prospectus 2005". Morningstar. Retrieved 8 September 2016.
  15. ^ Avafia, Tenu; Berger, Jonathan; Hartzenberg, Trudi (2006). "The ability of select sub-Saharan African countries to utilise TRIPs Flexibilities and Competition Law to ensure a sustainable supply of essential medicines: A study of producing and importing countries" (PDF). WHO. Archived from the original (PDF) on 23 January 2014.
  16. ^ Kahn, Tamar (10 September 2008). "South Africa: Enaleni Takes Name of Its Unit Cipla-Medpro". All Africa.
  17. ^ Priyan, Vishnu (5 September 2023). "Cipla to bolster OTC portfolio with acquisition of Actor Pharma". Pharmaceutical Technology. Retrieved 5 September 2023.
  18. ^ JARVIS, LISA (4 September 2006). "Mylan Will Buy Most of Matrix". Chemical & Engineering News Archive. 84 (36): 8. doi:10.1021/cen-v084n036.p008. ISSN 0009-2347.
  19. ^ "Cipla's History". Cipla South Africa. n.d. Retrieved 16 May 2022.
  20. ^ a b "cipla ltd (CIPLA:Natl India)". Business Week. Archived from the original on 6 November 2013. Retrieved 7 November 2013.
  21. ^ "Annual Report FY 2022-23" (PDF). Cipla. 15 July 2014. Archived (PDF) from the original on 11 October 2023. Retrieved 11 October 2023.
  22. ^ "AIDS Healthcare Foundation Campaign Challenges Cipla Over Drug Pricing in India" (Press release). PR Newswire. 8 August 2007. Retrieved 4 November 2013.
  23. ^ "India gives Hetero Labs and Cipla approval to make Gilead's COVID-19 drug". Reuters. 21 June 2020.
  24. ^ "Coronavirus drug: Cipla launches Cipremi's, claims it is the cheapest Remdesivir". The Financial Express. 9 July 2020.
  25. ^ "Coronavirus drug: Cipla ramps up production of antiviral remdesivir amid demand spurt".
  26. ^ "Corporate Information: At a Glance". Cipla. Archived from the original on 12 September 2016. Retrieved 6 July 2019.
  27. ^ "Cipla in the pink of health". Business Standard. 25 September 2013. Retrieved 5 November 2013.
  28. ^ a b c d "Annual Report 2013-14" (PDF). Cipla. 22 August 2014. Archived from the original (PDF) on 22 January 2015. Retrieved 17 September 2014.
  29. ^ "Cipla Limited". Retrieved 2 November 2013.
  30. ^ "Scripwise Weightages in S&P BSE SENSEX". BSE India. Archived from the original on 1 December 2015. Retrieved 2 November 2013.
  31. ^ "NTPC Limited". NSE India. Retrieved 2 November 2013.
  32. ^ "Download List of CNX Nifty stocks (.csv)". NSE India. Retrieved 2 November 2013.
  33. ^ "StockEdge". Retrieved 25 January 2023.
  34. ^ "Latest CIPLA Shareholding Pattern". Equitymaster. Retrieved 25 January 2023.
  35. ^ "Company Profile - Cipla Limited". Retrieved 3 November 2013.
  36. ^ "Pharmaceutical sector award". Dun & Bradstreet. 10 September 2006. Archived from the original on 4 November 2013. Retrieved 3 November 2013.
  37. ^ "Asian Paints, Cipla in Forbes list". Economic Times. 17 November 2005. Retrieved 3 November 2013.
  38. ^ DBT, Cipla get Thomson Reuters India innovation awards
  39. ^ "Lupin, Sun Pharma and Cipla amongst tops most reputed pharma brand list". The Economic Times. 17 August 2016. Retrieved 6 July 2019.
  40. ^ "Home".
  41. ^ "Home".
  42. ^ "Cipla rises on morning-after pill". Hindustan Times. 5 October 2007. Archived from the original on 5 February 2015. Retrieved 3 November 2013.
  43. ^ "Cipla Launches i-pill". Financial Express. Retrieved 3 November 2013.
  44. ^ "'i-pill' by Cipla draws criticism from experts". Financial Express. 27 October 2007. Retrieved 3 November 2013.
  45. ^ a b "The Treasure of Mumbai". Wired Magazine. December 2006. Retrieved 4 November 2013.
  46. ^ "Heart-warming story of the Hamieds, who set up CIPLA and have been saving lives". National Herald. April 2020. Retrieved 12 April 2020.
  47. ^ "Indian Generic Drug Maker Targets Sad Americans". 3 January 2007. Retrieved 4 November 2013.

External links edit