BREATH OF NEW AIR

Structural changes in the global pharma industry are throwing up challenges and opportunities. Enter Cipla with its expertise in respiratory medicine, readiness for a crusade against antibiotic resistance, and vision for relevance beyond pharma.

- AVEEK DATTA

FOR THE HAPLESS CITIZENS OF DELHI, it is that dreaded time of the year again. The dipping mercury bringing respite from the heat, but the air quality worsening, emblematic of India’s struggle with relentless pollution. Other Indian cities face this predicament too, leading to a rising incidence of asthmatic problems in children and chronic obstructive pulmonary diseases (COPD) among senior citizens. In fact, COPD, according to the U.S.’ Centers for Disease Control and Prevention, has been identified as the second highest cause of death in India after cardiovascular causes.

This also explains the sustained relevance of pharma major Cipla, which has built its business on an understanding of the human respiratory system and created a repository of drugs for a wide range of lung ailments. At the end of FY19, Cipla, with a turnover of ₹16,792 crore and net profit of ₹1,528 crore (according to Capitaline data), ranked No. 1 in respiratory therapy in the country with a 21.8% share of the market. Its respiratory drugs business grew at 19%, outpacing the 11% growth exhibited by the overall India market. No wonder Cipla is at No. 91 on the Fortune India 500 list this year, up nine places from last year.

Cipla’s growth comes on the back of a period of positive change for the generic drugmaker, founded in 1935. Forty-three-year-old Samina Vaziralli, Cipla’s executive vice chairperson, and Umang Vohra, 48, managing director and group chief executive officer, have spent the last four odd years fixing some fundamental issues that were holding back growth. The measures included exiting unprofitable global markets, divesting businesses, and establishing a front-end marketing setup in the U.S. in 2015. Cipla also acquired two U.S.-based drugmakers, InvaGen Pharmaceuticals and Exelan Pharmaceuticals, in 2016.