Indian link boosts S African Cipla Medpro profitsApril 3rd, 2009 - 1:42 pm ICT by IANS
By Fakir Hassen
Johannesburg, April 3 (IANS) Exclusive access to a wide range of products from Cipla India helped boost revenues of pharmaceutical company Cipla Medpro South Africa by nearly 40 percent, the company reported.
With its revenues growing at 38.8 percent, Cipla Medpro again continued to grow faster than the total private market, but the company posted a loss of 15.6 million rands before interest and tax because of the huge costs of making its plant at Durban compliant with the Pharmaceutical Inspection Convention, it said on the Johannesburg Securities Exchange website.
Currently operating at 20 percent capacity, this highly sophisticated plant has an annual output capability of 3.5 billion tablets (with reserve) and may still take some time to see significant revenues being generated.
Growth was recorded across numerous categories, such as neuropsychiatry, asthma, cardiovascular, over the counter (OTC) and animal health.
This growth was attributed to product launches, exclusive access to Indian pharmaceutical giant Cipla India’s strong pipeline of products and dossiers, a strong and rapidly expanding OTC product portfolio, listings in mass market retailers, a large sales force and a continued aggressive marketing strategy.
Twenty five new products were launched during the year across all categories - skincare, colds and flu, and nutritional supplements, and further launches are scheduled for 2009.
Cipla said that its antidepressant, Lexamil, and its cardiovascular product, Cipla Perindopril, were each gaining market share of almost 40 percent in their markets, reflecting a trend of increased demand for these two stress-related drug types in the current global financial meltdown.
Cipla is also one of the leading generic anti-retroviral producers, having won a government contract last year. This will see the entry of supplies from the local plant, as well as from the Mumbai-based plant, Cipla India.
The pipeline from Cipla India remains strong, with the benefit of favourable prices and payment terms. Cipla Medpro currently has 155 dossiers awaiting registration, another 37 about to be submitted and a further 46 dossiers ordered from Cipla India for delivery over the next 12 months.
Cipla Vet, the companion animal veterinary products business, has recently launched the first generic of the world’s biggest selling tick and flea product, with the company projecting significant market share gains in this category during 2009.
After in-depth industry research and analysis, the new agricultural chemicals division, Cipla Agricare launched recently with a comprehensive range of 21 internationally SGA-certified pesticides. With another 12 products expected soon from Cipla India for local trials and registration and a further six ready for registration, it is envisaged that the targeted market share and revenues are attainable within approximately four seasons.
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Tags: aggressive marketing, animal health, cipla india, colds and flu, financial meltdown, hassen, marketing strategy, mass market retailers, medpro, nutritional supplements, otc product, output capability, perindopril, pharmaceutical company, pharmaceutical giant, pharmaceutical inspection, portfolio listings, private market, product portfolio, rands