Introduction

The Indian pharmaceuticals market is the third largest in terms of volume and thirteenth largest
in terms of value, as per a report by Equity Master. Branded generics dominate the
pharmaceuticals market, constituting nearly 70 to 80 per cent of the market. India is the largest
provider of generic drugs globally with the Indian generics accounting for 20 per cent of global
exports in terms of volume. Of late, consolidation has become an important characteristic of the
Indian pharmaceutical market as the industry is highly fragmented.
India enjoys an important position in the global pharmaceuticals sector. The country also has a
large pool of scientists and engineers who have the potential to steer the industry ahead to an
even higher level.
The UN-backed Medicines Patent Pool has signed six sub-licences with Aurobindo, Cipla,
Desano, Emcure, Hetero Labs and Laurus Labs, allowing them to make generic anti-AIDS
medicine Tenofovir Alafenamide (TAF) for 112 developing countries.
Market Size

According to India Ratings, a Fitch company, the Indian pharmaceutical industry is estimated to
grow at 20 per cent compound annual growth rate (CAGR) over the next five years. The Indian
pharma industry, which is expected to grow over 15 per cent per annum between 2015 and 2020,
will outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent
between the same period1. Presently the market size of the pharmaceutical industry in India
stands at US$ 20 billion. As on March 2014, Indian pharmaceutical manufacturing facilities
registered with the US Food and Drug Administration (FDA) stood at 523, highest for any
country outside the US.
Indian pharmaceutical firms are eyeing acquisition opportunities in Japan's growing generic
market as the Japanese government aims to increase the penetration of generic drugs to 60 per
cent of the market by 2017 from 30 per cent in 2014, due to ageing population and rising health
costs.
India's biotechnology industry comprising bio-pharmaceuticals, bio-services, bio-agriculture,
bio-industry and bioinformatics is expected grow at an average growth rate of around 30 per cent
a year and reach US$ 100 billion by 2025. Biopharma, comprising vaccines, therapeutics and
diagnostics, is the largest sub-sector contributing nearly 62 per cent of the total revenues at Rs
12,600 crore (US$ 1.9 billion).
Investments

The Union Cabinet has given its nod for the amendment of the existing Foreign Direct
Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100 per cent
under the automatic route for manufacturing of medical devices subject to certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflows worth US$ 13.32 billion
between April 2000 and September 2015, according to data released by the Department of
Industrial Policy and Promotion (DIPP).
Some of the major investments in the Indian pharmaceutical sector are as follows:

Cipla announced the acquisition of two US-based companies, InvaGen

Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc., for US$ 550 million.

Glaxosmithkline Pharmaceuticals has started work on its largest greenfield

tablet manufacturing facility in Vemgal in Kolar district, Karnataka, with an
estimated investment of Rs 1,000 crore (US$ 150 million).

Lupin has acquired two US based pharmaceutical firms, Gavis

Pharmaceuticals LLC and Novel Laboratories Inc, in a deal worth at US$ 880
million.

Several online pharmacy retailers like PharmEasy, Netmeds, Orbimed, are

attracting investments from several investors, due to double digit growth in
the Rs 97,000 crore ( US$ 14.8 billion) Indian pharmacy market.

Stelis Biopharma announced the breakthrough construction of its customised,

multi-product, biopharmaceutical manufacturing facility at Bio-Xcell
Biotechnology Park in Nusajaya, Johor, Malaysia's park and ecosystem for
industrial and healthcare biotechnology at a total project investment amount
of US$ 60 million.

Strides Arcolab entered into a licensing agreement with US-based Gilead

Sciences Inc to manufacture and distribute the latter's cost-efficient Tenofovir
Alafenamide (TAF) product to treat HIV patients in developing countries. The
licence to manufacture Gilead's low-cost drug extends to 112 countries.

CDC, the UKs development finance institution, invested US$ 48 million in

Narayana Hrudayalaya hospitals, a multi-speciality healthcare provider, with
an aim to expand affordable treatment in eastern, central and western India.

Cadila Healthcare Ltd announced the launch of a biosimilar for Adalimumab for rheumatoid arthritis and other auto immune disorders. The drug will be
marketed under the brand name Exemptia at one-fifth of the price for the
branded version-Humira. Cadilas biosimilar is the first in class and an exact
replica of the original in terms of safety, purity and potency of the product,
claims the company.

Torrent Pharmaceuticals entered into an exclusive licensing agreement with

Reliance Life Sciences for marketing three biosimilars in India Rituximab,
Adalimumab and Cetuximab.

Indian Immunologicals Ltd plans to set up a new vaccine manufacturing

facility in Pondicherry with an investment of Rs 300 crore (US$ 45 million).

SRF Ltd has acquired Global DuPont Dymel, the pharmaceutical propellant
business of DuPont, for US$ 20 million.

Intas Pharmaceuticals is the first global company to launch a biosimilar

version of Lucentis, the worlds largest selling drug for treatment of
degenerative eye condition called Razumab.

Government Initiatives

The Addendum 2015 of the Indian Pharmacopoeia (IP) 2014, published by the Indian
Pharmacopoeia Commission (IPC) on behalf of the Ministry of Health & Family Welfare, is
expected to play a significant role in enhancing the quality of medicines that would in turn
promote public health and accelerate the growth and development of pharmaceutical sector.
The Government of India unveiled 'Pharma Vision 2020' aimed at making India a global leader
in end-to-end drug manufacture. Approval time for new facilities has been reduced to boost
investments. Further, the government introduced mechanisms such as the Drug Price Control
Order and the National Pharmaceutical Pricing Authority to deal with the issue of affordability
and availability of medicines.
Romania is keen to tie up with the Indian pharmaceutical companies for research and develop
new drugs. "Romania will collaborate with India for license acquisition to sale India's drugs in
Europe," said Mr Mario Crute, Counsellor in Ministry of health in Romania at GCCI. The
country will tie up with the Indian pharmaceutical companies for research and develop new
drugs.
Some of the major initiatives taken by the government to promote the pharmaceutical sector in
India are as follows:

The Government of India plans to incentivise bulk drug manufacturers,

including both state-run and private companies, to encourage Make in India
programme and reduce dependence on imports of active pharmaceutical
ingredients (API), nearly 85 per cent of which come from China.

The Department of Pharmaceuticals has set up an inter-ministerial coordination committee, which would periodically review, coordinate and
facilitate the resolution of the issues and constraints faced by the Indian
pharmaceutical companies.

The Department of Pharmaceuticals has planned to launch a venture capital

fund of Rs 1,000 crore (US$ 154 million) to support start-ups in the research
and development in the pharmaceutical and biotech industry.

Indian and global companies have expressed 175 investment intentions

worth Rs 1,000 crore (US$ 150 million) in the pharmaceutical sector of
Gujarat. The memorandums of understanding (MoUs) would be signed during
the Vibrant Gujarat Summit.

Telangana has proposed to set up India's largest integrated pharmaceutical

city spread over 11,000 acres near Hyderabad, complete with effluent
treatment plants and a township for employees, in a bid to attract investment
of Rs 30,000 crore (US$ 4.5 billion) in phases. Hyderabad, which is known as
the bulk drug capital of India, accounts for nearly a fifth of India's exports of
drugs, which stood at Rs 95,000 crore (US$ 14.3 billion) in 2014-15.

At the launch of Cluster Development Programme of pharmaceutical sector,

Mr Ananth Kumar, Minister of Fertiliser and Chemicals, announced that six
pharmaceutical parks will be approved and established this year which will
have sufficient infrastructure and facilities for testing and treatment of drugs
and also for imparting training to industry professionals.

Road Ahead

The Indian pharmaceutical market size is expected to grow to US$ 100 billion by 2025, driven
by increasing consumer spending, rapid urbanisation, and raising healthcare insurance among
others.
Going forward, better growth in domestic sales would also depend on the ability of companies to
align their product portfolio towards chronic therapies for diseases such as such as
cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
The Indian government has taken many steps to reduce costs and bring down healthcare
expenses. Speedy introduction of generic drugs into the market has remained in focus and is
expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health
programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical
companies.
Trends in Indian Pharma sector revenue

The Indian pharmaceuticals market increased at a CAGR of 12.79 per cent in 2015 from US$ 6
billion in 2005, and is expected to expand at a CAGR of 15.92 per cent to US$ 55 billion by
2020
By 2020, India is likely to be among the top three pharmaceutical markets by incremental
growth and sixth largest market globally in absolute size
Indias cost of production is significantly lower than that of the US and almost half of that of
Europe. It gives a competitive edge to India over others.

CIPLA
Cipla is a globally recognized Indian pharmaceutical giant. It ensures to provide patients with
access to high quality, affordable and effective medicine and support. Ciplas mission is to
expand their presence as a healthcare company globally, which uses high end technology and
innovation to meet daily needs of all patients.

Cipla was born out of Dr. K.A. Hamieds vision to harness Indian expertise for self-sufficiency
in the chemical and pharmaceutical industry in India.( 'The Chemical, Industrial &

Pharmaceutical Laboratories' in 1935 in Mumbai. The name of the

Company was changed to 'Cipla Limited' on 20 July 1984) Dr. K.A. Hamied was

an exemplary visionary who donned various hats; he was a chemist, an entrepreneur and pioneer,
an active participant in Indias independence struggle, a close ally of Mahatma Gandhi, Dr. Zakir
Hussain and various others, a legislator in the Bombay Presidency, head of various associations,
Sheriff of Bombay, proactive supporter and sponsor of institutes of scientific excellence in India.
Be it the commencement of bulk drug production in India, the landmark Indian Patents Act of
1970, the several firsts in India and the world, its historic international stance on the price and
availability of antiretroviral drugs for HIV treatment in 2000-2001, its free-of-cost Palliative
Care Centre for terminally-ill cancer patients, Cipla, under the leadership of its current Chairman
Dr. Y.K. Hamied, has stood for fearlessness and compassion. It is not for nothing that we say
None Shall be Denied.
Apart from its various national and international milestones, the story of Ciplas growth and
expansion, its ups and downs, successes and challenges is also one that deserves to be
chronicled. According to Dr Y K Hamied, Cipla was ranked 56 in the 1960s.
In 1994, Cipla launched Deferiprone, the worlds first oral iron chelator.[13] In 2001,
Cipla offered medicines (antiretrovirals) for HIV treatment at a fractional cost (less
than $350 per year per patient).[16]
In 2012, the company slashed prices of three life-saving cancer drugs by 50-64%.

with an employee base of 20000+ Cipla take care of its continuous innovation in R &D with 30+
world firsts. Its product portfolio includes over 1,500 world class products across various
therapeutic segments, with more than sixty dosage forms.
Caring for life is their core value that includes, 1.caring is an unbreakable promise that they will
have to keep, whatever it takes to ensure patients have continued access to the highest quality
medicines at affordable prices; No matter if a disease affects millions or just a few hundreds. For
the medical practitioners they have their unique set of values. That includes assurance of worldclass medicines and support to all therapeutic areas. For business partners, caring brings the
confidence of always getting world-class quality and competitive prices. It is also a great place to
work as For employees, their core value manifests itself in a safe, equal-opportunities' workplace
that encourage innovation for a healthier world. It has International Approvals from the
following medical approval societies such as US FDA, WHO-Geneva, MHRA-UK, TGAAustralia, SUKL-Slovak Republic, APVMA-Australia, MCC-South Africa, PIC-Germany,
Danish Medical Agency, ANVISA-Brazil, INVIMA- Colombia, NDA-Uganda, Department of
Health-Canada and MOH-Saudi Arabia, among others.
Some of its revolutionary brands are Acarboze, Natamycin,Terazocin, Ciclesonide etc.
Revenues INR. 7110.71Crores

Market Capitalization INR. 39467.24Crores

Profit INR. 1172.09Crores
Total No. of Patents in their name 19
Consolidated Ranking Index 20371.497
APIs and formulations are produced at 34 state-of the-art Cipla plants spread across
the country. Primarily, medicines for treatments of ailments like depression, obesity,
cardiovascular diseases, arthritis and diabetes are developed by Cipla. It is India's
fourth largest pharmaceutical company accounting for a market capitalisation worth
Rs. 47,025.38 crore on 15 June 2015. Its products and services may be categorised
as below:

APIs

Formulations

Veterinary

Registered Office
Cipla Limited, Cipla House, Peninsula Business Park,
Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013

Listing
Equity Shares: BSE Limited and National Stock Exchange of India Limited
Global Depository Receipts: Luxembourg Stock Exchange

Highlights

Continuous innovation in R & D with 35+ world firsts.

Over 1,500 products across various therapeutic categories, with 60+ dosage forms.

Presence in over 150 countries

Approvals
US FDA, WHO-Geneva, MHRA-UK, TGA-Australia, SUKL-Slovak Republic, APVMAAustralia, MCC-South Africa, PIC-Germany, Danish Medical Agency, ANVISA-Brazil,
INVIMA- Colombia, NDA-Uganda, Department of Health-Canada and MOH-Saudi Arabia,
among others

Contact
Mumbai Central Office: +91 22 23082891, +91 22 23095521
Peninsula Business Park Office: + 22 24826000, +91 22 24826701, +91 22 24826300

 Dr. Y.K. Hamied

Non-Executive Chairman
Mr. M.K. Hamied
Non-Executive Vice-Chairman
Mr. Subhanu Saxena
Managing Director & Global Chief Executive Officer
Mr. S. Radhakrishnan
Whole-time Director
Ms. Samina Vaziralli
Executive Director
Mr. Ashok Sinha
Non-Executive / Independent Director
Dr. Peter Mugyenyi
Non-Executive / Independent Director
Mr. Adil Zainulbhai
Non-Executive / Independent Director
Ms. Punita Lal
Non-Executive / Independent Director
Ms. Naina Lal Kidwai
Non-Executive / Independent Di