It gives me immense pleasure to share with you some important insights about yourCompany the indigenous pharma industry and the overall status of healthcare.
These are extremely challenging times for our industry and also for Cipla. The industrysaw a slow growth rate in the recent past due in some measure to Government policies andcontrol measures. Also globally we witnessed increasing pressure on the pharmaceuticalindustry regulatory and compliance issues are getting more demanding intellectualproperty rights increasingly have become more complex and pricing pressures areintensifying. Moreover socio-economic and environmental volatility is prevalent in mostof the markets that we serve across the world.
Let me share with you some statistics related to the status of healthcare in India. Thedisease pattern reveals some startling figures. We rank 147 out of 184 countries inhealthcare spending. India spends approximately 1% of its GDP on healthcare compared toover 8% by the US Sweden and Cuba. In fact over 60% of Indians pay for their personalhealthcare. The average cost of hospitalisation has increased from about ` 9000 in 2004to over ` 25000 currently.
However the above dismal picture reinforces our commitment to ensure that no patientwill be denied access to high quality a3ordable medicine and medical support. For morethan eight decades of our corporate evolution we have striven to make medicinesaccessible and a3ordable to a large number of patients both in India and globally.
Even as we remain committed to our purpose of Caring for Life' we hope that ourGovernment takes industry leaders into confidence to address major issues such as pricingintellectual property and monopoly. A long-term pragmatic drug policy can certainly helpthe industry and the Government to plan and work towards building better healthcarefacilities for the future as healthcare is a basic human right.
During the financial year ended March 17 your Company's domestic growth has been 10%.We have successfully integrated our two recent acquisitions InvaGen and Exelan into ourglobal mainstream operations. Recently Cipla USA ranked 9th highest in prescriptionsamong all the US generic companies. Besides we are among the leaders in South Africa andalso in several smaller countries such as Uganda Sri Lanka and Mauritius among others.We continue to serve multiple markets effect ively throughout the world.
One of the major factors for your Company to stay ahead and maintain a suitable growthdespite a highly competitive environment is Cipla's investment in R&D. This year thefigure has reached 7.6% of our total revenue and we are among the leaders conductingeffect ive R&D in the domestic pharmaceutical landscape. This year we filed 32Abbreviated New Drug Applications (ANDAs) in the US. We have filed many patents in Indiaand internationally and we are confident that the overall result of our initiatives willbe evident in the coming years.
At the same time your Company has taken a very strategic decision to sharpen our focusin areas where we have the maximum competence and expertise. Cipla strongly believes thisis essential for progress.
Your Company stays committed to widen its reach and meet patient needs by entering intolicensing agreements and partnerships with both international and Indian companies. Ciplacontinues to provide drugs of exemplary quality consistency and reliability to the publicand serve their medical requirements both in India and abroad. Cipla will continue todevelop existing and newer markets globally and assist underdeveloped nations in allpossible ways. Your Company's focus will remain on a global access programme in severalcritical therapeutic and neglected areas that include HIV/AIDS malaria hepatitis cancerand reproductive health. Recently Cipla was one of only two international pharmacompanies selected for an African cancer initiative programme by a group consisting of theAmerican Cancer Society Clinton Health Access Initiative National Comprehensive CancerNetwork and IBM.
Your Company is proud of its manufacturing facilities both in API and finished dosageforms across the world. We will continue to upgrade and preserve our tradition of thehighest quality standards.
Cipla is committed to using its technology and innovation to deliver medicines ofoutstanding quality for which we have an excellent reputation within India and abroad.Cipla has an exceptionally talented management team that is preparing Cipla for the yearsahead. Your
Cipla continues to provide drugs of exemplary quality consistency and reliability tothe public and serve their medical requirements both in India and abroad.
Company's systems technologies people practices governance standards are nowbenchmarked with the best anywhere. The OneCipla Credo is a commitment to be the kind ofcompany we want to be. I firmly believe that Cipla is undergoing a transformation for thebetter and we will deliver to our shareholders a stronger future based on the foundationof our past legacy.
I wish to convey my gratitude to all of you for your continued support over the years.Your Directors and management are committed to ensuring that Cipla remains a leadinginstitution that we all believe in a unique blend of science business purposecommitment and humanity.