Cipla Q1 PAT up 45% YoY to Rs 996 crore on strong India, US business

Pharma major Cipla posted a 45.1 per cent year-on-year (YoY) rise in profit after tax (PAT) for the quarter ended June 30, 2023, to Rs. 996 crore, riding on a 17.7 per cent rise in income from operations at Rs. 6,329 crore.

On a sequential basis, the company’s revenues grew by 10.2 per cent while PAT growth was 40.6 per cent. Cipla said strong growth in its India business — prescription, trade generics and consumer health arms — over last year has boosted revenues.

The One-India franchise (domestic business) grew by 12 per cent YoY. The company posted strong numbers in the US, too — the highest-ever revenue of $222 million, up 43 per cent YoY. The US business also grew sequentially over the previous quarter when it posted revenues of $202 million.

Umang Vohra, managing director (MD) and global chief executive officer (global CEO) of Cipla said the firm expects a run-rate of $210-215 million revenues from the US every quarter. This is mainly because its base business is growing, and generic revlimid (an immunomodulating treatment) is doing well.

Cipla said that its key asset Lanreotide (hormonal drug) has improved its market share to 18 per cent. And, its focus continues on limited competition launches.

Meanwhile, the company has taken a two-site strategy for its key respiratory assets as some of its plants are yet to clear the USFDA regulatory hurdles.

Vohra said that for its key metered dose inhaler (MDI) products, it is getting a site in the US ready, apart from its Indian sites.

“The site is getting ready, and technology transfer will begin soon. If we get a clearance for generic Advair from Indore, then we can launch it within a week. Or else, the launch will be delayed by a year or so,” he said.

The idea of having filings from two sites is a de-risking strategy followed by Cipla. Both the sites would be inspected by the FDA. Depending on which one gets approval first, the company can proceed with the launch.

The South Africa private market business grew by 13 per cent YoY in local currency terms. It was backed by growth in over-the-counter and prescription businesses. Cipla’s R&D investment stands at Rs. 349 crore, or 5.5 per cent of sales in Q1FY24.