Cipla: Difference between revisions

| traded_as = {{BSE|500087}}<br/>{{NSE|CIPLA}}<br/>[[NIFTY 50|NSE NIFTY 50 Constituent]]

| key_people = [[Yusuf Hamied|Y. K. Hamied]] <small>([[Chairman]])</small><br>Umang Vohra <small>([[CEO]])</small>

| revenue = {{Increase}} {{INRConvert|17476.19|c}} <ref name=pnl>{{Cite web|title=Cipla Consolidated Profit & Loss account, Cipla Financial Statement & Accounts|url=https://www.moneycontrol.com/financials/cipla/consolidated-profit-lossVI/C|access-date=2020-07-28|website=www.moneycontrol.com|language=en}}</ref>

| operating_income = {{Increase}} {{INRConvert|3205.99|c}} <ref>{{Cite web|title=Cipla Consolidated Profit & Loss account, Cipla Financial Statement & Accounts|url=https://www.moneycontrol.com/financials/cipla/consolidated-profit-loss/C|access-date=2020-06-21|website=www.moneycontrol.com|language=en}}</ref>

| net_income = {{Increase}} {{INRConvert|1546.98|c}} <ref name=pnl/>

| assets = {{Decrease}} {{INRConvert|23662.56|c}} <ref name=bs>{{Cite web|title=Cipla Consolidated Balance Sheet, Cipla Financial Statement & Accounts|url=https://www.moneycontrol.com/financials/cipla/consolidated-balance-sheetVI/C|access-date=2020-07-28|website=www.moneycontrol.com|language=en}}</ref>

| equity = {{Increase}} {{INRConvert|15763.00|c}} <ref name=bs/>

| location = [[Mumbai]], [[Maharashtra]],  [[India]]

'''Cipla Limited''' is an Indian multinational [[pharmaceutical]] company, headquartered in Mumbai, India. Cipla primarily develops medicines to treat [[respiratory]], [[cardiovascular disease]], [[arthritis]], [[diabetes]], [[weight control]] and [[Depression (mood)|depression]]; other medical conditions.<ref>http://www.thehindubusinessline.com/companies/how-a-little-blue-pill-changed-ciplas-fortunes/article5670851.ece</ref>

==History==

It was founded by [[Khwaja Abdul Hamied]] as 'The '''C'''hemical, '''I'''ndustrial & '''P'''harmaceutical '''La'''boratories' in 1935 in Mumbai.<ref name=History>{{cite web |url=http://www.cipla.com/Home/About-Us/History.aspx |title=About us - History |publisher=Cipla Limited |access-date=3 November 2014 |archive-url=https://web.archive.org/web/20151027060707/http://www.cipla.com/Home/About-Us/History.aspx |archive-date=27 October 2015 |url-status=dead }}</ref><ref name=ETHistory>{{cite web |url=http://economictimes.indiatimes.com/cipla-ltd/infocompanyhistory/companyid-13917.cms |title=Company History - Cipla Ltd. |publisher=Economic Times |access-date=3 November 2013}}</ref>

The name of the company was changed to 'Cipla Limited' on 20 July 1984.<ref name=ETHistory/> In the year 1985, the US FDA approved the company's bulk drug manufacturing facilities.<ref name=IIHistory/> Led by the founder's son Yusuf Hamied, a Cambridge-educated chemist, the company provided generic AIDS and other drugs to treat poor people in the developing world.<ref>{{cite web |url=http://www.hbs.edu/businesshistory/emerging-markets/pages/profile-detail.aspx?profile=yhamied |title=Interview with Yusuf Hamied |website=Creating Emerging Markets |publisher=Harvard Business School}}</ref>

In 1995, Cipla launched [[Deferiprone]], the world's first oral iron chelator.<ref name=History/> In 2001, Cipla offered medicines ([[Management of HIV/AIDS|antiretrovirals]]) for [[HIV]] treatment at a fractional cost (less than $350 per year per patient).<ref>{{cite news |url=http://usatoday30.usatoday.com/news/world/2001-02-07-aidscocktail.htm |title=Indian drug company offers cheap AIDS drugs |newspaper=USA Today |date=19 June 2001 |access-date=3 November 2013}}</ref>

In 2013 Cipla acquired the South African company Cipla-Medpro, kept it as a subsidiary, and changed its name to Cipla Medpro South Africa Limited.<ref name=VC>{{cite news|last1=Jawani|first1=Lohit|title=Cipla completes acquisition of South Africa’s Cipla Medpro|url=http://www.vccircle.com/news/pharmaceuticals/2013/07/16/cipla-completes-acquisition-south-africa%E2%80%99s-cipla-medpro|work=VC Circle|date=16 July 2013|access-date=8 September 2016|archive-url=https://web.archive.org/web/20160315164809/http://www.vccircle.com/news/pharmaceuticals/2013/07/16/cipla-completes-acquisition-south-africa%E2%80%99s-cipla-medpro|archive-date=15 March 2016|url-status=dead}}</ref><ref name=Delists>{{cite web|title=Delists from JSE|url=http://www.bdlive.co.za/business/healthcare/2013/07/16/cipla-medpro-delists-from-jse-as-cipla-deal-is-finalised|publisher=Business Day Live|access-date=13 July 2013|date=2013}}</ref>  At the time of the acquisition Cipla-Medpro had been a distribution partner for Cipla and was South Africa's third biggest pharmaceutical company.<ref name=VC/>  The company had been founded in 2002 and was known as Enaleni Pharmaceuticals Ltd.<ref>{{cite web|title=Enaleni Pharmaceuticals Limited Prospectus 2005|url=http://globaldocuments.morningstar.com/documentlibrary/document/e00037afcc0c3668.msdoc/original|publisher=Morningstar|access-date=8 September 2016}}</ref>  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,<ref>{{cite web|last1=Avafia|first1=Tenu|last2=Berger|first2=Jonathan|last3=Hartzenberg|first3=Trudi|title=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|publisher=WHO|url=http://apps.who.int/medicinedocs/documents/s18249en/s18249en.pdf|date=2006}}</ref> and in 2008 it changed its name to Cipla-Medpro.<ref>{{cite web|last1=Kahn|first1=Tamar|title=South Africa: Enaleni Takes Name of Its Unit Cipla-Medpro|url=http://allafrica.com/stories/200809100609.html|publisher=All Africa|date=10 September 2008}}</ref>

Cipla sells [[active pharmaceutical ingredients]] to other manufacturers as well as pharmaceutical and personal care products,<ref name=BW>{{cite web |url=http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=CIPLA:IN |archive-url=https://archive.today/20131106234625/http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=CIPLA:IN |url-status=dead |archive-date=6 November 2013 |title=cipla ltd (CIPLA:Natl India) |publisher=Business Week |access-date=7 November 2013 }}</ref> including [[Escitalopram oxalate|Escitalopram]] (anti-depressant), [[Lamivudine]] and [[Fluticasone propionate]].<ref name=BRR201314>{{cite web |url=http://www.cipla.com/CiplaSite/Media/PDF/Business_Responsibility_Report_2013_14.pdf |title=Business Responsibility Report 2013-14 |publisher=Cipla |date=15 July 2014 |access-date=17 September 2014 |archive-url=https://web.archive.org/web/20150317170629/http://www.cipla.com/CiplaSite/Media/PDF/Business_Responsibility_Report_2013_14.pdf |archive-date=17 March 2015 |url-status=dead }}</ref> They are the world's largest manufacturer of [[antiretroviral drugs]]<ref name=BW/><ref>{{cite web |url=http://www.prnewswire.com/news-releases/aids-healthcare-foundation-campaign-challenges-cipla-over-drug-pricing-in-india-profit-at-what-cost-aids-drugs-for-all-57993227.html |title=AIDS Healthcare Foundation Campaign Challenges Cipla Over Drug Pricing in India |publisher=PR Newswire |date=8 August 2007 |access-date=4 November 2013}}</ref>

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 parent company<ref>{{cite news |title=India gives Hetero Labs and Cipla approval to make Gilead's COVID-19 drug |url=https://www.reuters.com/article/us-health-coronavirus-india-remdesivir/india-gives-hetero-labs-and-cipla-approval-to-make-gileads-covid-19-drug-idUSKBN23S0EO |work=Reuters |date=21 June 2020 |language=en}}</ref> and [[DCGI]] approval for "restricted emergency use" in [[COVID-19]] treatment of critical confirmed patients.<ref>{{cite news |title=Coronavirus drug: Cipla launches Cipremi’s, claims it is the cheapest Remdesivir |url=https://www.financialexpress.com/lifestyle/health/cipla-launches-remdesivir-claims-it-is-inexpensive/2018015/ |work=The Financial Express |date=9 July 2020}}</ref><ref>{{cite news |title=Coronavirus drug: Cipla ramps up production of antiviral remdesivir amid demand spurt |url=https://www.businesstoday.in/current/corporate/coronavirus-drug-cipla-ramps-up-production-of-covid-19-antiviral-remdesivir/story/409758.html |work=www.businesstoday.in}}</ref>

Cipla has 34 manufacturing units in 8 locations across India and a presence in over 80 countries.<ref>{{cite web|url=http://www.cipla.com/en/corporate-information/at-a-glance.html|title=Corporate Information: At a Glance|publisher=Cipla|access-date=6 July 2019|archive-url=https://web.archive.org/web/20160912104850/http://www.cipla.com/en/corporate-information/at-a-glance.html|archive-date=12 September 2016|url-status=dead}}</ref><ref>{{cite news |url=http://www.business-standard.com/article/news-cm/cipla-in-the-pink-of-health-113092500515_1.html |title=Cipla in the pink of health |newspaper=Business Standard |date=25 September 2013 |access-date=5 November 2013}}</ref> Exports accounted for 48% {{INRConvert|4948|c|lk=|year=2013}} of its revenue for FY 2013–14.<ref name=AR201314>{{cite web |url=http://www.cipla.com/CiplaSite/Media/PDF/2014_08_06_78th_Annual_Report_2013_14_001.pdf |title=Annual Report 2013-14 |publisher=Cipla |date=22 August 2014 |access-date=17 September 2014 |archive-url=https://web.archive.org/web/20150122062022/http://www.cipla.com/CiplaSite/Media/PDF/2014_08_06_78th_Annual_Report_2013_14_001.pdf |archive-date=22 January 2015 |url-status=dead }}</ref> Cipla spent INR 517 cr. (5.4% of revenue) in FY 2013–14 on R&D activities.<ref name=AR201314/> The primary focus areas for R&D were development of new formulations, drug-delivery systems and APIs (active pharmaceutical ingredients). Cipla also cooperates with other enterprises in areas such as consulting, commissioning, engineering, project appraisal, quality control, know-how transfer, support, and plant supply.

==Listings and shareholding==

The equity shares of Cipla are listed on the [[Bombay Stock Exchange]],<ref>{{cite web |url=http://www.bseindia.com/stock-share-price/cipla-ltd/cipla/500087/ |title=Cipla Limited |website=BSEindia.com |access-date=2 November 2013}}</ref> where it is a constituent of the [[BSE SENSEX]] index,<ref>{{cite web |url=http://www.bseindia.com/indices/IndicesWatch_Weight.aspx?iname=BSE30&index_Code=16 |title=Scripwise Weightages in S&P BSE SENSEX |publisher=BSE India |access-date=2 November 2013 |archive-url=https://web.archive.org/web/20151201094728/http://www.bseindia.com/indices/IndicesWatch_Weight.aspx?iname=BSE30&index_Code=16 |archive-date=1 December 2015 |url-status=dead }}</ref> and the [[National Stock Exchange of India]],<ref>{{cite web |url=http://www.nseindia.com/live_market/dynaContent/live_watch/get_quote/GetQuote.jsp?symbol=CIPLA |title=NTPC Limited |publisher=NSE India |access-date=2 November 2013}}</ref> where it is a constituent of the [[CNX Nifty]].<ref>{{cite web |url=http://www.nseindia.com/content/indices/ind_niftylist.csv |title=Download List of CNX Nifty stocks (.csv) |publisher=NSE India |access-date=2 November 2013}}</ref> Its [[Global depository receipt|Global Depository Receipts]] (GDRs) are listed on the [[Luxembourg Stock Exchange]].<ref name=AR201314/><br>

As of 30 September 2014, the promoter group, 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.<ref name=Shareholding>{{cite web |url=http://www.cipla.com/CiplaSite/Media/Images/Banner/Shareholding-pattern-as-on-30th-September-2013.pdf |title=Shareholding pattern as on 30th September, 2013 |publisher=Cipla Limited |access-date=2 November 2013 |archive-url=https://web.archive.org/web/20131102201429/http://www.cipla.com/CiplaSite/Media/Images/Banner/Shareholding-pattern-as-on-30th-September-2013.pdf |archive-date=2 November 2013 |url-status=dead }}</ref> [[Life Insurance Corporation of India|LIC]] is the largest non-promoter shareholder with approx. 6.45% shareholding in the company by the end of September 2013.<ref>{{cite web |url=http://www.moneycontrol.com/bse/shareholding/shp_public_shares.php?sc_dispid=C#C |title=CIPLA - Shareholding belonging to the category : "Public and holding more than 1% of the Total No.of Shares" |website=MoneyControl.com |date=30 September 2013 |access-date=4 November 2013}}</ref>

| Promoter Group||36.80%

| Foreign Institutional Investors (FII)||23.32%

| Individual shareholders||19.00%

| Insurance companies||10.30

| Private Corporate Bodies||04.68%

| Mutual Funds and UTI||04.43%

| NRI/FCB/Others||03.46%

| GDRs||01.10%

| Total||100.0%

 

* Cipla won Dun & Bradstreet American Express Corporate Awards in 2006.<ref>{{cite web |url=http://www.dnb.co.in/top500/photogal5.html |title=Pharmaceutical sector award |publisher=Dun & Bradstreet |date=10 September 2006 |access-date=3 November 2013 }}{{Dead link|date=November 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

In August 2007, Cipla launched an [[emergency contraception]] drug "i-pill" sold [[over the counter]],<ref>{{cite news |url=http://www.hindustantimes.com/business-news/cipla-rises-on-morning-after-pill/article1-251319.aspx |title=Cipla rises on morning-after pill |newspaper=Hindustan Times |date=5 October 2007 |access-date=3 November 2013}}</ref> which was controversial with regard to its being available without a prescription and the large amount of drug contained per dose.<ref>{{cite news |url=http://healthcare.financialexpress.com/200710/market09.shtml |title=Cipla Launches i-pill |newspaper=Financial Express |access-date=3 November 2013}}</ref><ref>{{cite news |url=http://www.financialexpress.com/news/-ipill-by-cipla-draws-criticism-from-experts/232556 |title=‘i-pill’ by Cipla draws criticism from experts |newspaper=Financial Express |date=27 October 2007 |access-date=3 November 2013}}</ref>

In the late 1960s, Cipla began manufacturing a new, patented drug, [[propranolol]], without the permission of the drug's patent holder, [[Imperial Chemical Industries]] (ICI), which protested to the Indian government. The CEO of Cipla reached the [[First Indira Gandhi ministry|government of Indira Gandhi]] to change India's [[patent]] laws to eliminate patents that directly covered [[Pharmaceutical drug|drugs]], and instead to allow only patents that covered [[Chemical synthesis|methods to make drugs]].<ref name=Wired>{{cite news |url=https://www.wired.com/wired/archive/14.12/indiadrug.html |title=The Treasure of Mumbai |newspaper=Wired Magazine |date=December 2006 |access-date=4 November 2013}}</ref> so that Cipla could go ahead and produce as many low-priced generic drugs for the poor as possible. Since then Cipla has also produced a low-cost drug to treat HIV and expanded operations into several developing countries, including African nations, where most HIV and poor patients existed at one time.<ref name=nationalherald>{{cite news |url=https://www.nationalheraldindia.com/india/heart-warming-story-of-the-hamieds-who-set-up-cipla-and-have-been-saving-lives |title= Heart-warming story of the Hamieds, who set up CIPLA and have been saving lives |newspaper=National Herald |date=April 2020 |access-date=12 April 2020}}</ref> But the changes made led to criticism of both India's patent laws and Cipla.<ref>{{cite web|url=http://biohealthinvestor.com/2007/01/indian-generic-drug-maker-targets-sad-americans.html |title=Indian Generic Drug Maker Targets Sad Americans |website=biohealthinvestor.com |date=3 January 2007 |access-date=4 November 2013}}</ref> India reinstated patents on drugs in 2005.<ref name=Wired/>

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