#Cipla Q3 FY22 concall highlights ππ
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1. Revenue growth was at 6%. EBITDA margins were at 22.7% which tracks with their full year guidance despite increased RM and freight costs.
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1. Revenue growth was at 6%. EBITDA margins were at 22.7% which tracks with their full year guidance despite increased RM and freight costs.
The cost increases were offset by increased share of the complex and chronic launches, continuous rigor on cost control and operating efficiencies.
2. One India reported 13% growth YoY. The core prescription business in India excluding COVID grew strongly by 16% YoY. The branded prescription business is on track to achieve the $1 Billion mark
3. The US revenue for the quarter was $150 million, one of the highest in recent quarters led by strong fraction in the respiratory and other portfolio.
4. South Africa private business maintains a market meeting trajectory driven by steady launch momentum.
4. South Africa private business maintains a market meeting trajectory driven by steady launch momentum.
5. The COVID portfolio declined by almost 10% YoY and 17% sequentially. They do expect to see some traction in the coming quarter in line with the caseloads amid the ongoing third wave in India.
6. Total R&D investment for the quarter is at βΉ262 crores. All the priority projects continue to be on track. Expenditure is expected to increase as the respiratory assets progress in the clinical trials.
7. During the quarter the company unlocked a major peptide asset in the US with the approval of Lanreotide. They are expecting a sustainable ramp up over the medium term. They will continue to expand the peptide portfolio through internal development and partnerships
8. On Advair they remain closely engaged with the US FDA on their file. They are waiting to hear from the FDA on the inspection schedule for the Goa plant.
9. Lanreotide will be manufactured at their partnerβs site. Although ti
now they have not disclosed where it is.
10. Next year R&D is expected to be higher around 7-7.5%.
now they have not disclosed where it is.
10. Next year R&D is expected to be higher around 7-7.5%.
11. They are aware that large e-pharmacy players can cause disruption in the business and they are working on a strategy around it.
12. Europe is more sensitive to market entry than the US is on this product. So in the US if you are even third or fourth player because of the volumes in the market, people can carve out their own shares and stay sustainable.
Whereas in Europe the equation changes very rapidly after the second or third entrant, the market begins to be more responsive on price than you have seen in the US.
13. If you really want to bring more products and more innovative products into the market which are patent protected and innovation driven, you have to partner with a multinational corporation. There is no other way to get innovation into India.
For example yesterday there was news that Novo Nordisk is launching the oral Semaglutide in India, now that is a great product. If it was not Novo themselves and supposing Novo would be looking for a partner, many Indian companies would have offered to partner for this.
14. The infrastructure requirement of launching products from innovators isnβt anything new for the top 10 or 15 Indian companies, because everyone will have a cardiac field force, everyone will have a diabetic field force and every time there is a new product that comes in,
they kind of eliminate the tail products so that productivity is maintained.
β’ β’ β’
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