Indian multinational pharmaceutical company
Cipla Limited (stylized as Cipla) is an Indian multinational pharmaceutical company, headquartered in Mumbai. Cipla primarily develops medication to treat respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and 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]
History
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 Limited'.[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
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.[3] Cipla is the world's largest manufacturer of antiretroviral drugs.[20][21]
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.[22][23][24]
Operations
Cipla has 34 manufacturing units in 8 locations across India and a presence in over 80 countries.[25][26] 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.[27] Cipla spent ₹517 crore (5.4% of their revenue) in the 2013–14 fiscal year on R&D activities.[27] 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.[27]
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
The equity shares of Cipla are listed on the Bombay Stock Exchange,[28] where it is a constituent of the BSE SENSEX index,[29] and the National Stock Exchange of India,[30] where it is a constituent of the CNX Nifty.[31] Its Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.[27]
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.[32]
| Shareholders (as on 31-December-2022) |
Shareholding[33]
|
| 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%
|
| ADRs/GDRs
|
NIL
|
| Others |
2.82%
|
| Total |
100.00%
|
Criticism
Emergency contraception
In August 2007, Cipla launched an emergency contraception drug "i-pill" sold over the counter,[41]. The drugged sparked controversy as it was available without prescription and contained a large amount of API per dosage.[42][43]
Generic drugs
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[44] 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.[45] The changes made led to criticism of both India's patent laws and Cipla.[46] India reinstated patents on drugs in 2005.[44]
₹22,753 crore (US$2.8 billion) (FY23)[1]
₹23,662.56 crore (US$3.0 billion)[2] (2020)
