The company said it’s planning to launch at least one limited competition drug every month.
Drug maker Cipla on May 22 said it plans to maintain double digit growth rate in US, led by healthy launch pipeline in FY20, including the launch of generic Albuterol metered dose inhaler (MDI).
The growth was led by the launch of generic Sensipar, and the ramp-up of differentiated products such as generic Pulmicort, Voltaren and Isuprel. The company also said it is planning to launch at least one limited competition drug every month.
Cipla in FY19, reported revenues of Rs 16,362 crore, of which its US sales constituted little over one-fifth of its revenues, growing at 18 percent over the previous year. Though Cipla entered late in the American market, but it is one of the fastest growing markets for the company and is crucial for the overall improvement of margins.
Cipla, which was a laggard in terms of EBITDA growth compared to its peers, is targeting 20 percent plus growth growing forward.
Cipla took a calculated risk by launching the copy version of Amgen’s drug even as the patent litigation is still on in March this year. Sensipar is used in treatment of hyperparathyroidism in patients who are on dialysis with chronic kidney disease.
“At our scale if you have to grow meaningfully, at healthy double digit we need about $50 to $70 million addition every year,” said Kedar Upadhye, Global CFO of Cipla in an interview to Moneycontrol.
“The launch calendar looks busy, across plain oral solids and injectable drugs, last year we launched diclofenac gel which is a topical product and that we hope to scale it up this year. So while we launch new products, we will scale up products that we launched last year in parallel,” Upadhye said.
Upadhye expressed confidence of CIpla maintaining $120 -$125 million revenue run rate.
Cipla had filed 20 new abbreviated new drug applications (ANDAs) filed during the year including 2 in-licensed assets. On pricing pressure, Upadhye said Cipla too faces price erosion, but it isn’t at alarming levels.
“We don't have much of a concentrated portfolio. I see many of our peers top five products which contribute about 60-70 percent of the revenues in US, they face more price erosion compared to us,” Upadhye said.
“But we factor in 6-10 percent price erosion in our operating plan,” he added.On generic Advair, Upadhye said the company had imitated clinical trials on track.Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.