Cipla Q3 FY 24 -
Concall highlights -
Sales @ 6604 cr, up 14 pc
EBITDA @ 1748, up 24 pc (margins @ 26 vs 24 pc)
PAT @ 1068 vs 808 cr
R&D spends @ 6.1 pc of sales, up 10 pc YoY
Region wise performance -
India sales @ 2859 cr, up 12 pc, fuelled by chronic therapies and big brands ( 44 pc of total sales )
North America sales @ $ 230 million, up 18 pc ( 29 pc of total sales )
South Africa sales @ ZAR 1355 million, up 15 pc
( 1 ZAR = Rs 4.4 )
Other international Mkt sales @ $ 90 million ( 11 pc of total sales )
API and others represent 4 pc of sales
Company’s cash holdings @ 7200 cr ( I hope they r used to acquire speciality, branded portfolios )
Forecort Inhaler - became the No 1 Indian brand in Q3
Filed gSymbicort and one more product in US mkts
Awaiting approval for one peptide product launch
Therapy wise rank of Cipla India -
Respiratory - 01
Urology - 02
Cardiac - 07
Overall rank in India - 03
Rank in chronic therapies - 02
Company has 10 brands in top 100, 06 brands in top 50 and 03 brands in top 25 in IPM. Company has 20 brands with sales > 100 cr/yr
Cipla’s popular Indian OTC brands - Omnigel, Nicotex, Cofsils, Cipladine, Prolyte ORS solution
Acquired Actor Pharma in RSA for $ 49 million in Q3. Integration process is on
Q4 is a seasonally weak Qtr - both in India, US
Company’s Goa plant is scheduled for a re-inspection by USFDA in Q1 FY 24. It was last inspected in Aug 22 and was given a warning letter. Similar is the case with their Pithampur plant which was also given OAI status in Feb 23. OAIs at these 2 plants are hampering the new product launches in US
One Peptide product should get launched by Q1 FY 25. Cipla should be the first company to launch it. Mkt size for the product is descent ( they did not quantify )
Company is hopeful for an approval for the launch of Advair in US by end of FY 25. Current price of the generic Inhaler is around $ 30 / inhaler
Cipla has about 20 pc mkt share for lanreotide 505(b)(2) product in US. Hope to keep gaining incremental Mkt share in the coming Qtrs
Going fwd ( 3-5 yrs ), Respiratory and Peptide assets shall continue to be company’s two largest segments in the US mkt
Cash on books to be used for bolt-on acquisitions. Can go for larger assets in India, relatively smaller assets in Intl Mkts
Disc : holding, biased, not SEBI registered
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