Research Report on Cipla Limited on the basis of Company Profile, Management, Shareholding Pattern, SWOT Analysis, Competitive Analysis and Way forward.

1. FINLATICS
Report on CIPLA ltd
Prepared by: Aditya Arora
Research Insight-1

2. COMPANY OVERVIEW
Cipla Limited is an Indian multinational pharmaceutical and
biotechnology company, headquartered in Mumbai, India. Cipla
primarily develops medicines to treat respiratory, cardiovascular
disease, arthritis, diabetes, weight control and depression; other
medical conditions.
Cipla is a global pharmaceutical company whose goal is ensuring
no patient shall be denied access to high quality & affordable
medicine and support.
As of 17 September 2014, its market capitalization was Rs.
49,611.58 crore (equivalent to US$7.5 billion in 2019), making it
India's 42nd largest publicly traded company by market value.
Cipla's portfolio includes 2000+ products across multiple
therapeutic categories, including treatment for acute, chronic and
rare conditions. The company makes affordable medicines and has
played a pioneering role in HIV/AIDS treatment.
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Cipla announced the launch of remdesivir under its brand name
CIPREMI. Remdesivir is US FDA approved Emergency Use
Authorisation (EUA) treatment for adult and paediatric patients
hospitalised with suspected or laboratory-confirmed COVID-19
infection. In May, Gilead Sciences extended a voluntary non-
exclusive license to Cipla to manufacture and market Cipla’s
generic version of remdesivir called CIPREMI.

3. SHAREHOLDING PATTERN
Promoters and Promoter Group
36.7%
Others
22.9%
Indian Institutional Investors
22.5%
Foreign Institutional Investors
18%
GDR
0.1%
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Shareholding Summary for Cipla Ltd:
Shareholding Pattern - Cipla Ltd.

4. RESEARCH INSIGHT-1
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Name Designation Qualification
Experience
(inyears)
Umang Vohra Global CEO &
Managing Director
BE, Master of Business
Administration (Finance) 26
Samina
Hamied
Executive Vice
Chairperson
B.Com, Masters in
International Finance &
Accounting
22
S.
Radhakrishnan
Non-Executive
Director
Chartered Accountant 35
Ranjana
Pathak
Global Head –Quality,
Medical Affairs and
Pharmacovigilance
Doctorate in Health
Adminis. / MBA
36
Y. K.
Hamied
Non-Executive
Chairman
PhD in Organic
Chemistry
37
MANAGEMENT
Kedar
Upadhye
Global Chief
Financial Officer
CS / CMA / MBA 17
Geena
Malhotra
President, Chief Technology
Officer, Manufacturing
Operations & Respiratory
CoE
B.Pharm 34
M. K.
Hamied
Non-Executive Vice-
Chairman
Science Graduate 37
Ashok Sinha
Independent
Director
B.Tech. in Electrical Engineering
/ Post Graduate Diploma in
Management in Finance.
58

5. SWOT ANALYSIS
Strong R&D: Cipla has focused on developing new products as
well as on improving drug delivery systems and
expanding product applications. Cipla has set up strong
Research and Development department for the same. The
strong R&D facilities are well supported by many
manufacturing plants across the cities.
The wide range of Products: Cipla has a broad
product portfolio includes APIs and formulations for humans
and animal healthcare products. Cipla has over 2000 products
in over 65 categories and is constantly looking for expansion of
its product portfolio.
Social and technological initiatives: Cipla provides and supports
to cancer patients by providing them low-cost medicines and it
also initiated a “No touch Breast Scan” which is a step forward
to screening technology in India.
Well recognized by various regulatory authorities: Cipla’s
products are well recognised by regulatory authorities of India,
USA, Germany and the UK etc. this provides credibility to the
products of Cipla.
Strengths
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6. SWOT ANALYSIS
Lack of significant presence in developed countries: India is
Cipla’s major market for revenue generation. Although, Cipla
has the presence in over 100 other countries but it has low
significance in other developed markets and hence is highly
dependent on the Indian market.
Negative campaigning: AIDS healthcare foundation had
challenged Cipla over pricing of its drug for AIDS, which keep
the drugs out of reach of many in need. This brought a negative
publicity for Cipla.
Limited market share: High competition from local as well as
multinational pharmaceutical companies limits market share for
Cipla and doesn’t allow rapid growth.
Strategic Expansion: In the recent past, Cipla has been
expanding its business through initiatives such as investments,
partnerships and acquisitions in India as well as in
the international market. For instance, Cipla invested in a
biotech manufacturing facility in South Africa. It also acquired
InvaGen pharmaceuticals in the USA etc.
Weaknesses
Opportunities
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7. SWOT ANALYSIS
Treatment of HIV: Cipla offers a wide range of ARV products
through C-GA for the treatment of HIV/AIDS in both children
and adults. The growing number of patients can be provided
cure by Cipla’s medicines.
Grow in Emerging markets: Cipla should look forward to
growing in emerging markets, especially places where medical
infrastructure is improving and hence pharmaceutical is also
expected to grow.
Covid-19 drug: Cipla has launched with Gilead Sciences for
potential COVID-19 treatment drug remdesivir, an injectable
drug used in treating Covid-19 patients with severe conditions,
in India.
Drug Pricing control methods in India: Governments have
influence over pricing of a drug through national
health organisations. In India, a new pricing policy under Drug
price control has been proposed which can have a negative
impact on the industry. Changes in pricing policy affect
pharmaceutical companies.
Threats
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8. SWOT ANALYSIS
Intense competition in generics industry: There is intense
competition in the Indian generics industry from major
competitors such as Lupin, Sun Pharma etc. This affects growth
potential as well as limits the market share for Cipla.
Fluctuation in Exchange rates: Any changes in the exchange
rates affect the company’s financial agreement with other
countries and thus can affect profitability.
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FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
7,500
5,000
2,500
0
Domestic Market Growth
(INR crores)

9. COMPETITOR ANALYSIS
0 25,000 50,000 75,000 1,00,000 1,25,000
Sun Pharmaceutical
Dr. Reddy's Laboratories
Divi's Laboratories
Cipla
Aurobindo Pharma
Torrent Pharmaceuticals
Lupin Ltd
Zydus Cadila Healthcare
Abbott India
Alkem Laboratories
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................Market Capitalization (INR crores)...............
Top 10 listed pharmaceutical companies in India by market capitalization as of
June 2020

10. COMPETITOR ANALYSIS
Sun Pharmaceutical Industries Limited is
an Indian multinational pharmaceutical company headquartered
in Mumbai, Maharashtra, that manufactures and sells
pharmaceutical formulations and active pharmaceutical
ingredients (APIs) primarily in India and the United States. The
company offers formulations in various therapeutic areas, such
as cardiology, psychiatry, neurology, gastroenterology and diab
etology. It also provides APIs such
as warfarin, carbamazepine, etodolac, and clorazepate, as well
as anti-cancers, steroids, peptides, sex hormones,
and controlled substances.
Dr. Reddy's Laboratories is a multinational pharmaceutical
company. The company was founded by Anji Reddy, who
previously worked in the mentor institute Indian Drugs and
Pharmaceuticals Limited, of Hyderabad, India. Dr. Reddy's
manufactures and markets a wide range of pharmaceuticals in
India and overseas. The company has over 190 medications,
60 active pharmaceutical ingredients (APIs) for drug
manufacture, diagnostic kits, critical care,
and biotechnology products.
Below are the top 3 Cipla Ltd. Competitors:
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11. COMPETITOR ANALYSIS
Divi's Laboratories Ltd is an India based manufacturer of Active
Pharmaceutical Ingredients (APIs) and Intermediates. The
company is engaged in manufacture of leading generic
compounds, Nutraceutical ingredients and custom synthesis of
APIs and intermediates for global innovator companies.
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CONCLUSION
Cipla is one of the leading brands in the pharma and healthcare
sector. Cipla should overcome its weakness while It has developed
good positive image by providing support to cancer patients by
issuing drugs at low cost.
Another thing about Cipla It didn't overpriced its antiviral
drug remdesivir for use in COVID-19 treatment as constant price
rises in the Indian country is taking its toll and compounding the
problem. While Cipla is known for the reverse engineering of new
processes for the mass production of high quality drugs at low
cost.
Cipla should also increased its investment in the budding markets,
to push expansion in the global economy, Even though its drugs
are sold in over 100 countries, it has not made any overseas
acquisitions. Exports which were negligible a few decades ago are
now in excess of 50% of turnover