Cipla, Ipca ink drug supply pact with Clinton Foundation

Cipla and Ipca Laboratories have signed a long term anti-malarial drug supply agreement with the Clinton Foundation, reports CNBC-TV18. Clinton Foundation has fixed price points for supply to various countries.

Cipla and Ipca’s drugs are based on naturally derived artemesin.

How big is this move for Cipla?

Though the company is not ready to quantify the value of the deal, it is definitely a significant deal. There’s a a small pricing that they will be working on; the volume will be huge because it will be supplied to most of the African countries. Let’s also remember that in Africa malaria is one of the biggest killers of children and that’s where Cipla will play and instrumental role in supply of the drug. It’s a long-term supply agreement that was signed yesterday with Clinton Foundation and along with Ipca; Cipla will be supplying these products through the Clinton Foundation. At least for five-six years it will be a steady supply and value wise we do not have a ballpark right now.

About IPCA:

Both the companies are big in anti-malarial (drugs). Ipca is established worldwide for its anti-malarial drugs so it will be both equally shared. The margin will be something that close to anti-retroviral which is about 10-15% and that’s where Cipla will be also scoring quite a lot since its cost efficiencies are proven and that’s why I think Clinton Foundation have handpicked the two companies and the Active pharmaceutical ingredients (API) will also come from China. So overall it will be a steep supply for most of the African nations.