NSE Symbol: CIPLA | BSE Code: 500087
Cipla Ltd utilizes innovative and cutting-edge technology to satisfy the medical concerns of patients around the world. The company has been established as one of the most reputed and renowned Indian pharmaceutical names, who is serving for last 80 years.
The company supplies its medicines to more than 80 countries, and its portfolio features 1500+ products ranging from various therapeutic categories but with standard quality. Keeping a long-term sustainable industry in mind, Cipla has emphasized and recognized the need to give affordable medicines. In fact, it has been reported to be the world's first medicinal company to provide a ternary mixture ARV (antiretroviral) for AIDS/HIV treatment in Africa at the cost of less than one dollar per day. Since 2001, the company has not only treated millions of patients but also continues to concentrate on creating innovative medicinal products.
Cipla features 34 manufacturing divisions spread across eight different industry locations in India. However, the company has made its global presence in 100 different countries as well. The primary focus of the company is in R&D to come up with better drug-delivery systems, new drug formulations, and API (Active Pharmaceutical Ingredients).
The company also collaborated with a few other enterprises like commissioning, consulting, project appraisal, engineering, know-how transfer, quality control, plant supply, and support.
In the year 1935, Khwaja Abdul Hamied founded The Chemical, Industrial, and Pharmaceutical Laboratories in Mumbai but in 1984 the name of the Lab was changed to Cipla. In 1985, The United States FDA (Food and Drug Administration) approved the commercial drug manufacturing capabilities of Cipla.
The company is now handled by Mr.Yusuf Hamied who as a chemist graduated from the Cambridge University. He is the son of Mr. K.A. Hamied. Cipla is offering medicines of AIDS and other diseases to cure indigent patients in many developing countries.
The company launched the world's first ever oral iron chelator called Deferiprone in 1994. It has provided medicines for treating HIV at a very affordable cost of $350 per patient for a year in 2001. In 2013, the company acquired Cipla-Medpro and kept that as its subsidiary. Later, the name was changed to Cipla Medpro South Africa Limited.
Dr. Y.K. Hamied â€“ The Chairman(Non-executive)
Dr. Y.K. Hamied belongs to the 2nd generation of the founding family. He is a well-known scientist and attained his Ph.D. in organic chemistry during the year 1960 from the University of Cambridge. He had joined the company as a skilled Research & Development Officer in 1960. He was selected as the MD of Cipla in 1976, and 1989 became the Chairman. On March 31, 2013, he retired as MD but continued as a Chairman in the non-executive role from 2013.
From offering affordable drugs for HIV patients to enabling the world's most significant portfolio of devices and drugs in the inhalation therapy, Dr.Hamied's immense contribution and pioneering work to the healthcare industry have been celebrated throughout the world. In 2005, the Indian Government honored him with the Padma Bhushan Award, and in 2013, NDTV mentioned him in the list of 25 Global Living Legends in India.
Dr. M.K. Hamied â€“ The Non-Executive Vice-Chairman of Cipla
The non-executive vice-chairman of Cipla is M.K. Hamied, and he also belongs to the 2nd generation of the company's founding family. M.K. Hamied is graduated as a science student from the Bombay University.
His varied and vast experience in the company includes technical areas, production, general administration, and quality management. On March 31, 2014, he retired as an executive vice-chairman but continued the position in the non-executive role from April 2014.
Samina Vaziralli â€“ The Executive Vice-Chairperson of Cipla
The executive vice-chairperson of Cipla is Samina Vaziralli, and she belongs to the 3rd generation of the company's founding family. She graduated from the London School of Economics and had also worked with the leading firms in the U.K. and U.S.
She has been not only influential but also contributed significantly to boosting the company's present transformation agenda. She played an essential role in shaping and incubating Cipla Limited into the American market with tactical acquisitions.
Umang Vohra â€“ Global CEO (Chief Executive Officer) and Managing Director of Cipla
Umang Vohra is the Global CEO and Managing Director of Cipla. With degrees in marketing, finance, and engineering, Vohra initially worked with PepsiCo, Dr. Reddy's, and Eicher Motors. With the help of his experiences in various businesses and past roles in US & India, he built a notable career among others. At Cipla, he has been credited to revamp the European operations and thereby, enabling progress in profitability.
The market capitalization of Cipla Limited is above Rs.46,500 crore, as of March 2018.
Cipla Limited has reported its consolidated financial statements for the Q3 of the fiscal year 2018. The report showed that the net income for the third quarter in Fiscal 2018 was increased by 7% at Rs.3,914 crore from last year's revenue at Rs.3,647 Cr.
The EBITDA also increased by 20.9% and has been reported to be continued due to a drive in the cost optimization in spite of Research and Development stepping up the sales by 7.6%.
The company has performed extraordinarily in net profit, owing it to the strong sales in major markets across the globe. However, India recorded a double-digit healthy growth along with South Africa and delivered the highest ever quarterly sales.
The key milestones were accomplished for commencing Advair trials, and an addition of two tests are expected to start soon.
Overall, the company has shown positive growth in the markets of Europe, South Africa India, and the Sub-Sahara African regions.
The company is concentrating on developing a healthy specialty portfolio for the U.S. market and continuing it with the discussion at advanced stages in the Neurology and Respiratory Space.
The year 2018 began with the stock price at Rs.608, which kept on changing. Cipla announced its allotment of securities on January 4, followed by a meeting with the investors and analysts.
With this, the price increased to Rs.616 per share on January 10. The shares went down at Rs.608 at the ending day of January.
In February 2018, on the first day, the price of the share was at Rs.591 and kept on decreasing for a few days. Though after the announcement of Quarter three results, the cost of company shares surged closely by 8% at Rs.629.
The month of March commenced with stock price trading at Rs.593.90, which kept hovering for the next few days. The market saw the most significant downfall at Rs.579.95 on March 9.
Cipla Limited is one of the prominent Indian multinational biotechnology and pharmaceutical companies and has a corporate office located in Mumbai. The company primarily manufactures medicines to treat the following medical conditions:
Apart from the above, the company also produced drugs to handle a few other states. With a market capitalization of over Rs.517 billion (7.9 billion USD), Cipla is reported to be one of the largest publicly traded companies as per the market value.
Its objective is to make sure that patients have access to high-quality medicines but at an affordable cost.
Now, considering the company's Free Cash Flow for the last five years, it has shown an inevitable growth. The growth rate of both Earnings Per Share and Return on Equity is mediocre in spite of FCF being good.
Cipla is more likely as one of the biggest beneficiaries of the issues plaguing its peers, provided its lower base, a robust pipeline will undoubtedly be benefitted. Along with this, the company has been in the top 3 positions in the pharmaceutical industry of South Africa and India, making it one of the valid reasons to invest.
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Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.
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