Tag: Umang Vohra

Cipla Q3 results: Pharma major records highest ever revenue and EBITDA margin

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla on Monday, January 22, posted quarterly revenue of ₹6,604 crore (on a consolidated basis) in the third quarter of the current financial year, supported by growth across branded prescriptions, trade generics, and consumer health, the pharma major said in an exchange filing.

A CNBC-TV18 poll estimated Cipla’s revenue at 6,473.4 crore. Cipla had posted a revenue of ₹5,811 crore in Q3FY23.

Cipla’s net profit for the quarter under review jumped 31.8% to ₹1,056 crore, better than the CNBC-TV18 poll estimate of ₹1,020.4 crore. The pharma major had posted a net profit of ₹801 crore in the same period a year ago.

Cipla’s EBITDA (earnings before interest, taxes, depreciation, and amortization) in the third quarter came in at ₹1,747.7 crore, rising 24% against ₹1,408.4 crore it had posted in the October-December quarter last year.

Cipla’s margin jumped to its highest-ever 26.5% in the quarter under review. It had posted a margin of 24.2% in the same quarter a year ago.

#3QWithCNBCTV18 | Cipla Q3

-Net Profit At ₹1,056 Cr Vs CNBC-TV18 Poll Of ₹1,020.4 Cr

-Revenue At ₹6,604 Cr Vs CNBC-TV18 Poll Of ₹6,473.4 Cr

-EBITDA At ₹1,747.7 Cr Vs CNBC-TV18 Poll Of ₹1,541 Cr

-Margin At 26.5% Vs CNBC-TV18 Poll Of 23.8% pic.twitter.com/8IVsxeUpgw

— CNBC-TV18 (@CNBCTV18Live) January 22, 2024

In North America, Cipa posted its highest-ever quarter at $230 million at 18% YoY growth, backed by continuing momentum in key assets and robust demand in base business.

Another key market, South Africa, also recorded a 15% YoY increase in revenue in local currency terms, supported by positive traction in prescription, OTC, and tender.

Cipla’s research and development (R&D) investments stand at ₹400 crore, or 6.1% of sales, higher by 10% YoY, driven by product filings and developmental efforts.

On Cipla’s Q3 results, Umang Vohra, MD and Global CEO of the pharma major said, “I am happy to announce results for yet another quarter which further established our strengths of our core business in India, North America, and South Africa. Our topline growth for the quarter was at an impressive 14% YoY with strong EBITDA margins at 26.3%… Our focus continues on expansion in chronic therapies, growing big brands, global wellness, as well as developing our R&D pipeline in respiratory and peptides. We will continue to focus on driving profitable growth across businesses.”

Cipla’s had to reschedule its Board of Directors meeting to Monday, which was originally slated for Thursday, January 25, 2024. The decision came after Cipla encountered a situation where parts of its potential standalone financial results for the nine months ending December 31, 2023, were found circulating on social media.

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Upholding Cipla’s ethos: Umang Vohra on the crucial role of the management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In the annals of Indian history, the year 1939 holds a special place for Cipla, primarily due to the visit of Mahatma Gandhi to the Cipla Bombay Central office.

Gandhi, the champion of self-sufficiency for India, left a lasting impression on Cipla. His emphasis on self-reliance resonated deeply with the company, leading to a mission that would become integral to Cipla’s identity — self-sufficiency and caring for life.

Cipla’s Bombay Central Office has always been a hub of tremendous energy and innovation, a place that Chairman Yusuf Khwaja Hamied prefers working out of to date, perhaps a nod to the company’s rich legacy.

Umang Vohra, the current MD and Global CEO points out that Cipla is not just a pharmaceutical company; it’s a combination of legacy and a commitment to being there when people need it the most.

Cipla was there; whether it was challenging the patent regime, the fight against AIDS or the global pandemic like COVID-19. The company operates with the heart of a foundation doing everything for the public’s benefit.

Talking about succession and the idea that there are big shoes to fill when it comes to the Cipla legacy, Vohra points out that recent reports about the stake sale in Cipla are speculative. While there have been no official announcements yet, one has to infer, he notes, through the recent developments such as the opening up of the employee trading window, that it is business as usual for Cipla.

Also Read: Cipla promoters in talks to sell part stake to private equity firms, say sources

Hamied, in fact, is not as concerned about an owner but more about upholding the company’s values and mission. In conversations with Vohra, Hamied has discussed many times how Tata Sons and Asian Paints continue to co-exist through generations of promoters. As much as Hamied plans for succession on the promoter side, he has to plan for succession on the management end.

In all, Hamied places his trust in the capable hands of the management team to carry forward the legacy. What sets Cipla apart is its commitment to preserving its ethos.

The company’s commitment to providing affordable drugs is unwavering. While there has been talk about assessing businesses on a standalone basis, selling any part of the business at this stage seems unlikely. Cipla is not about bringing in a strategic investor for valuation boosts; it’s about delivering on its mission.

Talking about growth, Cipla seems to be bullish on the India story, especially in Tier-2 to Tier-6 cities as a big growth driver. In fact, the growth potential in these areas might surpass that of Tier-1 cities and metros. Vohra’s bullishness aligns with the growing trend of private equity investments in hospitals in Tier-2 to Tier-6 cities. He expects Tier-2 to Tier-6 to grow as much as 15% versus the whole of India at 10-12% for the industry.

Also Read: Cipla board approves sale of generics business to wholly-owned subsidiary for ₹350 crore

The company, which plans to introduce the weight loss drug Semaglutide in the Indian markets by 2025-2026, is expecting US sales to be above $220 million per quarter in future.

Vohra is expecting 24% margins with an upside conditional on launches such as that of the cancer drug Abraxane and is also looking to solve regulatory issues at the Goa and Indore facilities. For Goa, they will be ready for remediation by December and could see an inspection in the next six months. For Indore, it will be a little later, possibly by July or August of next year.

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Cipla: India is the pharmacy capital of the world for chemical synthesis but not biologic synthesis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is the pharmacy capital of the world when it comes to chemical synthesis, but it doesn’t enjoy the same distinction in the realm of biological synthesis, said Umang Vohra, Managing Director and Global CEO of Cipla, in an interview with CNBC-TV18.

Vohra stressed the need for a shift towards biological synthesis to keep up with the evolving healthcare landscape.

“India is the pharmacy capital of the world when it comes to chemical synthesis, but we are not the pharmacy capital of the world when it comes to biological synthesis,” he said.

Vohra noted the growing importance of biotechnology in the healthcare sector, stating,”I think the future of therapy and the way we see healthcare is going to be a lot more of biology. There is going to be chemistry to match biology but probably a lot more of biology. So that is going to trigger a reallocation of capital from chemistry to biology.”

Biological synthesis involves the development of complex pharmaceuticals through biological processes, often utilising living cells, genetic engineering, and recombinant DNA technology.

These biologics, such as monoclonal antibodies and gene therapies, have gained prominence in treating various diseases, including cancer and autoimmune disorders.

Watch the video for the full interview

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The Medicine Box: Cipla’s Umang Vohra on COVID-19 portfolio, upcoming drugs, US business outlook and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma industry’s Robinhood, Cipla is looking to increase its presence in the US market, the company’s MD and Global CEO Umang Vohra.

In this edition of The Medicine Box Podcast, CNBC-TV18’s Ekta Batra talks to Vohra about Cipla’s plan to capture a larger share of the US market, the firm’s COVID-19 portfolio – from Tocilizumab to Remdesivir to Favipiravir, new products, growth outlook and more.

Cipla, which is India’s third-largest pharma company and is present in more than 80 countries with over 46 manufacturing facilities, is looking to manufacture complex drugs and injectables in respiratory and cancer segments, Vohra said.

Tune in to The Medicine Box Podcast for more

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India prescription biz up 16%; launch momentum helping to offset price erosion in US: Cipla

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla posted its Q3 numbers. The company reported a consolidated net profit of Rs 756.88 crore for the third quarter ended December 31, 2021, almost flat compared to the year-ago period. In the corresponding quarter last year, the company posted a net profit of Rs 751.6 crore. The company’s total revenue from operations for the October-December period rose 6 percent to Rs 5,478.86 crore from Rs 5,169 crore in the corresponding period last fiscal.

CNBC-TV18 caught up with Umang Vohra, MD and Global CEO, Cipla, to gain an understanding of the Q3 numbers and upcoming launches.

Vohra affirmed that Q3 always sees strong sales in the US. He believes what is adding to it is the launch momentum. He is confident that the new launches will add sales above the $145-150 million base in the US.

He said, “The numbers are responding to our launch momentum. Two things specifically happened in the US in this quarter. One- the US is always highest in the December quarter. That’s just the pattern of buying and we see it every year. The second is that our launch momentum is accelerating.”

“So yes, in terms of new launches that come, we think that they will positively add above the USD 145 to 150 million base that we have. So yes, the US has moved up and the launches plus the December buying is a reflection of our numbers,” he explained.

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With respect to price erosion in the US, Vohra explained that the company has been grappling with it since the last 2-3 quarters. However, he believes the launch momentum is helping to offset the said price erosion. Additionally, he clarified that the company has a healthy number of launches lined up in H2FY23 as well.

“The nature of the US market will not change, the erosion will always be there. But if the launch momentum is able to support it, you feel it less. We did certainly feel a lot of price pressure in the last two to three quarters. We have guided that we expect a relatively healthy launch calendar in the second half of the next year,” he mentioned.

Also Read: Budget wishlist: Experts recommend higher allocation towards healthcare sector

On India prescription business, he said it was up 16 percent on a year-on-year basis. He explained that the COVID portfolio has declined. Infact, going ahead, the company may see 15-20 percent lower sales in COVID drugs as compared to the quarter gone by, Vohra noted.

He said, “In India, our overall consolidated prescription business grew by about 16 percent. Our COVID portfolio declined by 16 percent between the previous year and this year. Our non-COVID portfolio is going to beat market growth quite convincingly and that’s our goal going forward even into the next year.”

“We have done it over the past two and a half years; we are feeling more confident about the non-COVID part of the business. From a COVID perspective, there will always be some amount of COVID in our numbers – could be another 15-20 percent lower than what we reported in Q3 but realistically as a base, it is lower now,” he explained.

Watch the video for the full interview.

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Cipla COVID-19 vaccine: Commercial talks with Moderna not possible till broader issues resolved, says management

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla reported a better than an estimated set of earnings for the June-ended quarter with India and active pharmaceutical ingredient (API) segment-leading growth. In an interview with CNBC-TV18, Umang Vohra, MD & Global CEO of the company spoke at length about COVID vaccine plans, the Indian market performance and sustainable growth rate.

CNBC-TV18 had reported last week that the importing of donated COVID-19 vaccines from Moderna by Cipla which had come to light in June is still stuck and there is no movement on commercial talks either, sources informed CNBC-TV18.

ALSO READ: https://www.cnbctv18.com/healthcare/importing-of-donated-covid-19-vaccines-from-moderna-by-cipla-still-stuck-10227781.htm

“I cannot comment on what exactly is happening between Moderna and the Government of India. I can talk about the fact that like Moderna, we have expressed our interest to partner with vaccine manufacturers. We have been consistent with that intent,” said Vohra.

“We signalled earlier that we stay interested to bring the vaccine into the country, but it has to be once Moderna and the Government of India work out pending issues that they have between themselves,” he added.

The street’s eyes are peeled on whether Cipla still has the same level of interest that it did earlier to bring the vaccine to India.

“(This will) depending on moving parts in what happens between them as well as the market reality at that point in time,” Vohra said.

Cipla expects the Indian market growth to be around 12-14 percent for the rest of the year (FY22).

“For the past several quarters now, we have been showing growth higher than the industry with COVID and without COVID drugs,” Vohra said.

For more details, watch the video

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Cipla Q4FY21 below estimates; mgmt says Remdesivir production ramped up

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla’s Q4FY21 earnings came in below estimates. Revenue is lower due to India business slowing down and the API business also declining 10 percent on a year-on-year (YoY) basis. Umang Vohra, MD and Global CEO of Cipla discussed the performance.

“We have guided to maintaining our track of profitability and growing the business from where we are. Our momentum is pretty strong as we look at our business trajectory with the upcoming launches in the US or with what we are doing in India, both for COVID disorders and disorders not related to COVID,” he said.

“We feel confident about the momentum,” he added.

On input price rise, he stated, “Most companies have managed it as we have. I think it will abate when the demand for COVID drugs abate somewhat and that is related to cases. So in about a month or so, we will begin to see some of that abating.”

The company has ramped up its Remdesivir production by 5 times. “We don’t believe the market should be short beyond another week or so because lots of manufacturers have ramped up,” he said.

A lot of other vitamins, minerals related to COVID-19 are being sold by Cipla.

On Tocilizumab, he said, “There is a global shortage of Tocilizumab but we have been able to service and I have been told that the government has also been able to import from the US and that has helped alleviate some of the demand that is there with regards to Tocilizumab.”

Cipla also plans to sell the antibody cocktail in partnership with Roche. “That will also add to our COVID portfolio,” he shared.

In terms of the COVID-19 portfolio contributing to the total revenue pie, he mentioned, “In the last quarter, we are about 3 percent of our sales that came from COVID. In the quarters before that, we were about 5 percent. So the bulk of our growth still comes from our COVID portfolio.”

When asked if Cipla is in talks with various companies to import vaccines from global majors, he replied, “It is unconfirmed. I cannot say whether it is true or not. All I can say is we have been pretty vocal about our willingness to partner with anyone who wants to bring their vaccine into the country and we have several rounds of discussions with many players but don’t have a partnership as yet.”

“We are happy to partner with anyone to sell their vaccine in the country,” he shared.

On repurposing facilities for vaccine manufacture, he stated, “there is a chance and if required, we have a few facilities that we can repurpose to fill and finish. We don’t have any facilities for drug substance so far.”

For the full interview, watch the video

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Cipla ramping up Remdesivir production; mgmt says vaccine IP waiver can’t solve immediate problems

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla has entered into a distribution marketing contract for Roche’s COVID-19 antibody-drug cocktail Casirivimab and Imdevimab. Umang Vora, Managing Director and Global CEO of Cipla spoke to CNBC-TV18 on the IP waiver and vaccine production.

“There are two types of problems that are sought to be solved. First is the most immediate problem of vaccinating the people and the second is the problem around long-term access,” he said.

“I am not so sure that an IP waiver at this stage is something that can solve an immediate problem. It may be able to solve longer-term problems but the immediate problems perhaps need to be solved by more collaborations like what we have been having with the rest of the large pharmaceutical players and there are templates that exist for this in partnerships that have already happened,” he added.

“We are ramping up Remdesivir quite significantly and so are some of the other Indian companies as well,” he shared.

“We are currently about over 2-3 times of what we did in wave one of COVID-19 in terms of Remdesivir ramp up,” he further mentioned.

For more, watch the video

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Looking at quarterly run rate of $140 mn in US market: Cipla

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla’s second quarter performance exceeded analyst estimates on most parameters. Umang Vohra, MD and Global CEO of Cipla discussed the numbers in an interview with CNBC-TV18.

Talking about growth sustaining in second half of the year Vohra said, “The numbers are in response to the market forces and I do think these numbers in a certain range will continue to exist going forward at least for the next one quarter.”

“There might be a marginal dip or off in revenue or in profit but by and large we are on this trajectory for the current quarter as well,” he said.

On the outlook for the India business he said, “I would like to believe the COVID portfolio growth will begin to abate as cases go down in India so we are seeing cases coming down. Other than COVID our businesses are fairly strong on its fundamentals. We believe we can expand our margin trajectory by about 300 basis points from the start of the year on a normalise basis to where we think we would be in 2-3 years.”

Talking about US markets Vohra said, “Approximately 140 ($140 million)  is now the new base of the US and as we launch new products this run rate would increase.

“The Albuterol category is fairly large category, Perrigo was in the market till about month and a half back, and Perrigo will be back in the market soon as well. I think the arrival and the departure of player may create a little bit of short term pressure in volumes, but I don’t think the prices would correct as significantly because of Perrigo’s arrival back into the market.”

To know more about the company’s Q2 performance, watch the video.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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Intend to bring as many medicines showing potency against COVID-19: Cipla MD Umang Vohra

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Cipla is one stock that is holding up on the back of its earnings and strengthening of balance sheet. In an interview with CNBC-TV18, Umang Vohra, MD and Global CEO of Cipla discussed the pharma major’s plans on COVID-19, it’s impact and much more.

According to Vohra, the impact of COVID-19 to the supply chain has been extremely high, especially on emerging markets like India. He added that Cipla intends to bring as many medicines showing potency against COVID-19.

“We did it with HIV, we do it for a lot of antibiotics and when COVID struck, I think we had the same vision to try and get as many therapies,” he said.

Vohra said that there are a lot of clinical trials underway. “Whatever we finally sell for COVID or whatever we manufacture for COVID is going to be linked to the outcome of these trials. I do not think we are doing it in the absence of science,” he said.

“Whether it is Actemra which is Tocilizumab or whether it is Remdesivir, both these products – there will be a lead time on Remdesivir, Tocilizumab, Actemra has already been supplied to the market. Therefore Cipla will aim to be one of the first, with the rest of the Indian companies that have also signed up, to bring the drugs of the market,” he pointed out.

Watch the video for more.

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