Cipla –
Q2 FY 25 results and concall highlights –
Revenues – 7051 cr, up 9 pc
EBITDA – 1886 cr, up 12 pc ( margins @ 26.7 vs 26.1 pc )
PAT – 1303 cr, up 17 pc
Geography wise performance –
India – 2948 cr, up 5 pc. Chronic sales mix @ 61.5 pc. Launched 2 new products in India in Q2 – Vanoprazan ( for gastro-oesophaegal reflux ) and Cipenmet ( for allergic rhinitis ) – both these are in-licensed products
Continues to do well in key focus therapies – Cardio, Respiratory and Urology – outpacing IPM growth rates. Grew in line with the Industry in the anti-infective space
Company has 21 brands in top 300 brands. 25 of company’s brands have sales > 100 cr
Consumer healthcare brands grew strongly in double digits. Key brands include – Cofsils, Nicotex, Cipladine, Prolyte and Omnigel
US – 1967 cr, up 4 pc. Launched 4 new products in US in Q2. Lareotide franchise and Albuterol reached a mkt share of 35 and 19 pc respectively
South Africa – 639 cr, up 12 pc. Company is ranked no.2 in South African Pharma mkt. Company has 8 brands with sales > 100 Mn ZAR ( aprox 50 cr )
EU + EMs – 797 cr, up 18 pc
API sales – 140 cr, up 7 pc
R&D spends @ 5.5 pc of sales
Cash on books ( minus the debt ) @ 7950 cr
A weak season for anti – infectives and respiratory drugs led to weak growth in India business. This should reverse in Q3
Share of chronic business in India now stands @ 61.5 pc
Facing some supply challenges in the Lanreotide business. Q3 sales may be lower than in Q2 because of the same. Supply challenges expected to resolve by end of Q3
Company’s Goa facility has been awarded VAI status by USFDA post its inspection on 30 Oct. This should accelerate the expected launch of Abraxane ( chemotherapy drug ) in US – a key positive
Expect to launch Advair in US in H1 FY 26
Continue to maintain EBITDA margin guidance band of 24-26 pc for FY 25
Have added aprox 1500 MRs in India in the last 2.5 yrs
Because of supply constraints in Lanreotide in Q3, US revenues in Q3 are likely to be below $ 220 million vs $ 237 million in Q2
Launch of Symbicort expected to be in FY 27
Seeing low double digit price erosion in the oral solids base business in US
Mkt share in Lanreotide is expected to fall sharply in Q3 ( to around 20 pc levels ) in Q3. Should start to bounce back wef Q4 – once the supply challenges go away
Looking to make acquisition in India to utilise the cash on books. That’s priority No 1. Second priority is acquiring differentiated assets in US with strong entry barriers
Acquisition of Astaberry is helping accelerate the consumer healthcare business in India
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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