Cipla targets $5-billion revenue by 2020

Leading pharma player Cipla said it has targeted a revenue of USD 5 billion by 2020, of which USD 1 billion will come from the US market.

"Cipla has embarked on a new chapter of expansion and growth. We have a revenue target of USD 5 billion by 2020," Cipla Chairman Y K Hamied told shareholders at the company's 77th annual general meeting (AGM) here.

"Our earning from the US market is USD 200 million at present. US is a large generic market and we expects it will contribute USD 1 billion by 2020 following our expansion plans," Hamied said. The company's sales turnover registered an increase of 17 per cent at Rs 8,000 crore and net profit at Rs 1,500 crore in FY'13.

Subhanu Saxena MD & Global CEO, CIPLA informed that the company had over 110 projects in pipeline and wants to increase its filings over the next 2-3 years by 50 percent in the overseas market

"We will not be dependent on just one market. Cipla will take a balanced approach. Africa after the medpro transaction will be 25 pr cent of our sales. Even in our future vision whilst the aspiration for the us is three quarters of a billion dollars, it will only be 15-20 per cent of our total sales," Saxena said.

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In the international markets, the contribution from exports to the total revenues is more than 50 percent and is further expected to grow over the years, Hamied said. Cipla is evaluating several business models such as capturing value through direct presence in key priority markets including South Africa, US, Europe and Australia.

Additionally, Cipla will continue working with existing alliances to capture untapped growth opportunities, he added. The company has recently completed the acquisition of 100 per cent of share capital of Cipla Medpro in South Africa, at an investment of Rs 2,707 crore. This investment is aimed at further strengthening the company's commitment to the African continent.

On domestic markets opportunities, he said, Cipla continued to deliver robust growth in the domestic market across therapies and maintain its leadership position in respiratory, urology and HIV. The company's Patalganga project for the upgradation and scale-up of API facilities is nearing completion. It is anticipated that operations will commence during 2013-14.

The company is also scaling up its anti-cancer formulations facility at Goa. Besides, Cipla is in the process of setting up a new research and development as well as administration facility at Mumbai, he said.

Hamied pointed out the Indian government is under extreme pressure from the US and European pharma lobby to dilute its patent laws and so far the government has held on resolutely. The government must act positively and the Indian patent office must be vigilant and not allow frivolous multiple  patenting and evergreening of patents to follow judicial pronouncements in letter and spirit, so that unnecessary litigation can be avoided. 

(With inputs from PTI)