Cipla hopeful of achieving 15% revenue growth in FY13

Pharma major Cipla today said it is hopeful of achieving 12-15% revenue growth in the current financial year. "During the first four months of the current year, the company recorded a growth of more than 20% in turnover.

We are hopeful that we will end the year as planned with a revenue growth of 12-15%," Cipla Chairman and Managing Director Y K Hamied told shareholders at the company's 76th annual general meeting (AGM) here.

He said Cipla's turnover crossed Rs 7,000 crore mark with a profit of Rs 1,100 crore in FY12 and "we hope to cross the magical figure of Rs 10,000 crore within a few years".

The drugmaker is setting up API facilities at Patalganga (near Mumbai), Bengaluru and Kurkumbh (near Pune) which are expected to be completed in the current year. It is also upgrading its R&D center at Vikhroli in Mumbai and has set up a new R&D establishment at Patalganga.

Cipla's Indore formulation unit is now contributing Rs 700 crore to export revenue and it is yet to reach optimum capacity. The firm has made significant investment in making of biosimilar drugs, both in India and China. This activity will have immense potential in the coming years, he said.

The company has ventured into research in stem cells with a major investment in Stempeutics Research Pvt Ltd at Bengaluru. "We are hopeful of products based on stem cells reaching the market in 3-5 years," Hamied said.

Commenting on future plans, Hamied said the company has over 100 granted patents on APIs (active pharmaceutical ingredients), formulations and medical devices.

In the US, Cipla has over 130 Drug Master Files (DMFs) for active ingredients, 105 registered generic approvals and is awaiting 26 approvals, including 18 new drug applications.

In other regulated markets, including the European Union, the company has over 100 approved API and DMFs.

At present, Cipla exports 50% of its annual turnover to over 170 countries and has over 10,000 drug registrations worldwide, of which 1,800 are in the regulated markets, Hamied said.

In keeping with its commitment to make medicines affordable and accessible, the company recently announced a breakthrough price reduction in select cancer drugs.

Commenting on new drug Policy, Hamied said the government has yet to enact a suitable pharma policy. "Pricing policy today is totally inconsistent and arbitrary. We have insisted that drugs sold under monopoly should be scrutinised and put under price control, whether locally manufactured or imported. Multiple manufacturers and internal competition are most effective ways to reduce prices.

"We have also suggested that vital drugs required by the country can be produced by the public sector drug undertakings and Cipla will be happy to provide the required technology at no cost to the government," he said.