Management ReviewIndustry Structure and Development
The world economy has witnessed an unprecedented economic crisis causing severerecessionary trends in various countries. Several nations have made co-ordinated andconcerted efforts to provide the necessary impetus for the revival of the economy.However, it is to be seen how effective these measures will be to restore the globaleconomy to normalcy.
Compared to other economies, India has been somewhat stable. However, certain sectorswere badly affected and the GDP estimates had to be scaled down. The government has takensome proactive steps to control the situation, but sentiments remain gloomy. With therecent elections ensuring continuity in government, it is hoped that revival of theeconomy will be on top of the agenda in the months to come.
The Indian pharmaceutical industry remained less affected compared to other sectorsand, according to ORG-IMS, registered a growth of more than 10 per cent. While exportsgrew by more than 30 per cent due to the depreciating rupee (as per figures compiled byPharmexcil), there were challenges like falling liquidity in the global market, adversecurrency fluctuations and increasing competition in various markets, including the USA.
Performance Review
The Company’s turnover recorded a 22 per cent growth and crossed the Rs.5000 croremilestone. While exports grew by 30 per cent, the domestic sales grew by 15 per cent.Notably, technical fees fetched Rs.218 crore, marking a significant 42 per cent growthover the previous year. However, forward contracts entered into to hedge theCompany’s foreign exchange business had an impact on net profit growth. According toORG-IMS, Cipla remained the leader in the domestic market, as on 31st March2009.
Products
The Company introduced many new drugs and formulations during the year. Some of thesignificant introductions were:
• Abamune L (abacavir and lamivudine tablets) – new NRTI combination forHIV/AIDS
• Aprepit (aprepitant capsules) – new antiemetic for prevention of nausea andvomiting in cancer chemotherapy
• Atavir (atazanavir sulphate capsules) – once-daily PI for HIV/AIDS
• Bondria (ibandronate tablets and injection) – for osteoporosis andmetastatic bone diseases
• Cold Spray (azelastine and budesonide spray) – combination spray forallergic rhinitis
• Corvela (ranolazine tablets) – new antianginal and antischaemic agent
• Crisanta LS (drosperinone and ethinyl estradiol tablets) – new oralcontraceptive pill
• Desirox (deferasirox tablets) – new iron chelator for thalassaemia
• Doxotec (doxophylline tablets) – new xanthine bronchodilator
• Erlocip (erlotinib tablets) – new agent for the treatment of non-small celllung cancer and pancreatic cancer
• Gefticip (gefitinib tablets) – for advanced and metastatic lung cancer
• IF 1 (olopatadine eye drops) – topical antihistamine for allergicconjunctivitis
• Influvac (influenza vaccine) – for influenza prophylaxis
• Intiflo (eptifibatide injection) – new antiplatelet drug for acute coronarysyndrome
• Maxiflo (formoterol and fluticasone inhaler) –combination controllertherapy for asthma and COPD
• Melfan (melphalan tablets) – broad spectrum anticancer agent
• MTP Kit (misoprostol and mifepristone tablets) – single kit for medicaltermination of pregnancy
• Nebicip (nebivolol tablets) – double-action cardioselective beta blockerfor hypertension
• Nicotex (nicotine polacrilex chewing gum) –nicotine replacement therapy forsmoking cessation
• Oncodox Peg (pegylated liposomal doxorubicin injection) –liposome-encapsulated anticancer agent
• Phosome (liposomal amphotericin B injection) – lyophilized antifungalformulation
• Pruflox (prulifloxacin tablets) – new quinolone antibacterial for urinarytract infections
• Rabicip Fast (rabeprazole sodium tablets) – fast-acting PPI for acidrelated disorders
• Retilone (triamcinolone acetonide injection) – intravitreal therapy forsevere eye inflammation
• Seroflo Autohaler (salmeterol and fluticasone inhaler) – world’s firstICS-LABA combination in a breath-actuated metered dose inhaler for asthma and COPD
• Trioday (tenofovir, lamivudine and efavirenz tablets) – new once-a-daytriple-drug fixed dose combination pill for HIV/AIDS
• Triohale Multi-haler (tiotropium, formoterol and ciclesonide inhaler) –first triple-drug multi-haler for COPD
• Tugain (minoxidil gel) – new gel formulation for hair growth
• Valgan (valganciclovir tablets) – new antiviral for cytomegalovirusinfections
• Voritek (voriconazole tablets and injection) – broad-spectrum antifungalfor serious fungal infections
• Xylistin (colistemethate sodium injection) – injectable antibiotic forresistant infections
The Company had entered into an agreement with Avesthagen Limited to develop andmanufacture bio-therapeutic products. However, the agreed milestones could not be achieveddespite extended timelines and the agreement has been terminated.