Cipla successfully complete Phase 3 clinical study for fluticasone propionate and salmeterol inhalation powder
On a consolidated basis, Cipla's net profit declined 33% to Rs 245.95 crore on a 0.7% rise in net sales to Rs 4301.60 crore in Q4 March 2020 over Q4 March 2019.The company said its India Rx business grew by 12% on a year on year basis recording a third consecutive quarter of market beating growth. South Africa business continued the strong growth momentum to deliver growth of 10% on a year on year basis in local currency. US business reported $118 million oost normalisation of IP-enabled opportunity.
Cipla reported its Research & Development investment stood at Rs 311 crore in Q4 March 2020, which is 7.1% of sales.
Consolidated EBITDA declined 33% to Rs 652 crore in Q4 March 2020 from Rs 972 crore posted in Q4 March 2019. EBITDA margin declined to 15% in Q4 March 2020 from 22% reported in Q4 March 2019.
Commenting on company's performance, Umang Vohra, MD and Global CEO, Cipla said, As the world endures the unprecedented COVID-19 pandemic, our foremost focus has been on safeguarding our employees and ensuring wellbeing of our patients. In support of the Government's efforts to combat the crisis, the company set-up an INR 25 crore 'Caring for Life' COVID-19 dedicated fund to support the healthcare ecosystem and communities. As a pharmaceutical company, it our constant endeavour to ensure that patients have access to life-saving drugs, we recently partnered with Gilead Sciences, Inc. for the manufacturing and distribution of the investigational medicine Remdesivir to treat COVID-19 patients upon approval. Our key markets continued to demonstrate strong growth momentum in the quarter. The USFDA approval for generic Albuterol MDI and the successful completion of the Phase 3 clinical study of generic Advair Diskus has strengthened our respiratory franchise in the US market; furthering our aspirations of becoming the lung leaders of the world. As a 'new world' dawns post the pandemic, Cipla continues to uphold its pioneering legacy by reimagining healthcare and reinventing the ecosystem; all keeping the patient care at the core.
Consolidated net profit increased 1.2% to Rs 1,546.52 crore in the year ended March 2020 (FY20) from Rs 1527.70 crore posted in the year ended March 2019 (FY19). Revenue grew by 4.5% to Rs 16694.85 crore in FY20 over FY19.
Meanwhile, Cipla said its board approved raising funds upto Rs 3000 crore by issuing equity shares or American depository receipts or global depository receipts or foreign currency convertible bonds or other securities/financial instruments convertible into equity shares, whether denominated in Indian Rupee and/or foreign currency(ies), though a public issue or a private placement. The proposal is subject to shareholders' approval.
In a separate announcement on Monday (18 May) the drug major announced its submission of an Abbreviated New Drug Application (ANDA) for Fluticasone propionate and Salmeterol inhalation powder (100/50 mcg, 250/50 mcg and 500/50 mcg) to the United States Food and Drug Administration (USFDA). The company had recently announced the successful completion of its Phase-3 clinical end-point study for the product in the first attempt. The product is the generic version of GSK's Advair Diskus. According to IQVIA (IMS Health), Advair Diskus and its generic equivalents had US sales of approximately $2.9 billion for the 12-month period ending March 2020.
It is indicated as a twice-daily prescription medicine to treat asthma in patients aged four years and older. It is also used in the long term to treat chronic obstructive pulmonary disease (COPD), including chronic bronchitis, emphysema, or both, for better breathing and fewer flare-ups.
Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets. Shares of Cipla were up 1.1% at Rs 576.45 on BSE. The scrip was traded in the range of Rs 570.45 to Rs 582.50 so far during the day.
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