Cipla on Wednesday announced its financial results for Q1FY24. The company reported a 45.1 percent rise in its consolidated net profit for the quarter ended June 2023 at ₹995.7 crore as compared to ₹696.4 crore in the corresponding quarter of the last year.
During the press conference, Umang Vohra, MD and Global CEO, Cipla Ltd said that the revenues are up by almost 18 percent. The pharma major reported robust growth across branded prescription, trade generics and consumer health over the last year, resulting in growth in the One-India Franchise by 12% YoY.
While talking about the upcoming product launches and plans for the India market, Vohra told Financial Express.com: “I think India’s market product launches will be fairly significant. I would be doing 30-35 launches every year in India. It’s a strong market for us. We will also be starting a huge amount of respiratory launches starting at the end of this quarter and early next quarter. We will continue to have strong launches in India. I think overall from a new introduction perspective to revenue, we could expect about two and a half to 3 percent of our revenue or even higher than that coming from new launches.”
During the quarter, the India business grew 12% YoY across branded prescription, trade generics and consumer health.
In the branded prescription business, the performance continued to chart on its market-beating growth journey, with sustained momentum across all therapies by growing at 11%, at 2% higher than IPM growth of 9%, as per IQVIA Mat June’23. The company also reported sustained momentum in chronic therapies to increase its share in the category.
The trade generic business maintained its market leadership, with YoY growth of 8%, supported by traction in big brands. “We continue with our launch momentum by adding 23 products in the portfolio to build our future. Our Cipla Health franchise grew by 16% with margins reaching closer to mid-teens for the quarter. Big brands of Cipla Health scaled further by posting double-digit growth in revenues,” it stated.
The revenue of the company in Q1FY24 increased 17.7% to ₹6,328.9 crore from ₹5,375.2 crore, YoY, driven by performance in India, US and South Africa. Interestingly, the company’s US business reported the highest-ever revenue of $ 222 million, registering a growth of 43% YoY growth driven by robust momentum in differentiated portfolios.
“Our pipeline and execution have been a substantial driver to this growth. Key asset of Lanreotide has improved its market share to 18%. Focus continues on limited competition launches,” the company said in a statement.
According to the company’s statement, the South Africa Private Market grew at 13% YoY in ZAR powered by uptick in focused therapies in prescription business as well as high double-digit growth of 16% in OTC portfolio.
“Cipla now is the second largest player in prescription market by market share. Cipla grew at a 4Yr CAGR of 8.6%, in the market, which is growing at 3.6%. Strong momentum continues in base business and new launches,” it added.
“Key milestones are reaching the higher numbers for each of our markets. I think we have probably got one of the biggest quarters for India so far…biggest quarter for US so far…a bounce back in South Africa where again we have beaten the market…I think strong progress in our pipeline…we just finished a clinical study for our respiratory product…which is a very large clinical study and several of our initiatives are doing well. Our innovation initiatives are doing relatively well. obviously, we are remediating a lot of the reactions from the FDA audits and I think that’s going on well as well…we are a great place to work certified. I think that that’s a good milestone. I think, going forward, it will be a combination of how we can keep the base momentum going in India as well as in the US and several of our markets,” Vohra told Financial Express.com.
