Cipla, one of the leading pharmaceutical companies in India, is looking for opportunities to expand its presence in the US market through acquisitions and inorganic partnerships. The company is also focusing on improving its top line growth in Europe and margin expansion in South Africa.
The US market is a key strategic area for Cipla, as it offers potential for growth and innovation. The company plans to launch new products through delisting strategy, which involves acquiring the rights to sell drugs that are no longer marketed by the original manufacturers. Cipla also aims to partner with other companies to access new technologies and markets.
Cipla’s Global Chief Financial Officer Ashish Adukia said in an analyst call that “product launches through delisting strategy and as well as inorganic partnerships and acquisitions will remain one of our key priorities for the US market”. He added that the company would also focus on commercial execution of existing portfolios and resolution of USFDA observations.
The USFDA, or the US Food and Drug Administration, is the regulatory authority that approves and monitors drugs in the US. Cipla has received a warning letter from the USFDA for its Indore facility, which was audited in February 2023. The company has responded to the queries and is working on remediation.
Cipla’s MD and CEO Umang Vohra said that “derisking our top launches remains our top priority” as the company focuses on resolving regulatory issues at various manufacturing plants. He also stated that the company’s focus continues on regulatory efforts in Goa and Indore.
Apart from the US, Cipla is also looking to strengthen its position in other markets, such as Europe, South Africa and emerging markets. The company aims to improve its top line while maintaining sustainable margins in these regions. In South Africa, Cipla would build on its performance aided by growth in private and select tender business with greater emphasis on margin expansion.
Cipla reported a 32% increase in its consolidated net profit for the quarter ended December 2024, at Rs 1,056 crore. Its total revenue from operations rose by 14% to Rs 6,604 crore. The company attributed its strong performance to robust growth across segments, especially respiratory, urology and Covid-19 portfolio.