Cipla bets on respiratory, oncology and HIV segments in Brazil and China

 E Kumar Sharma        Last Updated: February 24, 2017  | 18:56 IST
Cipla bets on respiratory, oncology and HIV segments in Brazil and China

It is well known in the pharmaceutical industry globally that outside the US and Europe (and India, off course), the best markets for generics business are Brazil, China, Mexico, Turkey and Japan.

What should then be made of statements from Cipla about its foray in Brazil and China? Is it only following others into these markets? Not quite, explains a senior company official. "It is certainly not a me-too, even if the choice of geography seems so to some, because we have a ticket to win." That is its strengths in therapeutic segments like respiratory, HIV, oncology and cardiology.

 Brazil and China, given that they are big generics markets, are being seen by the company as the logical extension of its emerging markets presence. In fact, what Business Today gathers is that the move is to be seen as a result of the company's sustained shift in strategy over the past decade-and-a-half. Over a decade ago, the company was seen largely as an India-domiciled  company that sold in every geography in a B2B fashion with front-end partners in different countries. That changed about five years ago to a strategy where the focus was to have its own direct front-end presence in select geographies outside India. Now, it is taking this further with expanding footprint into some of the major geographies within the map of emerging markets . The key attraction being an opportunity to leverage its strengths in areas like respiratory, HIV and oncology. But then, it is not going to yield instant results. Analysts feel a process like this will mean efforts over a five-to-six year timeframe before substantial results start flowing in since the process involves first filing to be made for approval to launch products, followed by getting them approved and then getting the approval for pricing. It is perhaps the reason why the company may be wanting to get it all started.

In terms of revenue breakup for Cipla today, India contributes around 40 per cent, emerging markets is about 30 per cent (but mainly from South Africa and from the Global Fund business) , the US is around 18 per cent and the balance from Europe.

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