Mumbai: Drug major Cipla is eyeing acquisitions and inorganic partnerships in the US market while consolidating its presence across segments in the domestic market. The Mumbai-based company is also looking to improve the top line in Europe and margin expansion in South Africa."Product launches through delisting strategy and as well as inorganic partnerships and acquisitions will remain one of...
Mumbai: Drug major Cipla is eyeing acquisitions and inorganic partnerships in the US market while consolidating its presence across segments in the domestic market. The Mumbai-based company is also looking to improve the top line in Europe and margin expansion in South Africa.
"Product launches through delisting strategy and as well as inorganic partnerships and acquisitions will remain one of our key priorities for the US market," Cipla Global Chief Financial Officer Ashish Adukia said in an analyst call.
The drug maker would also focus on commercial execution of existing portfolios and resolution of USFDA observations, he added.
In the South African market, Cipla would build on its performance aided by growth in private and select tender business with greater emphasis on margin expansion, Adukia stated.
"In emerging markets and Europe, top priority is to improve top line while margins are maintained at sustainable levels," he said. As per the yearly trend, the fourth quarter will have an impact of weaker seasonality in India and North America, Adukia noted.
Elaborating on the domestic business, he stated that the key focus area would be to further strengthen growth levers for wellness portfolio among others.
Cipla MD and CEO Umang Vohra said that "derisking our top launches remains our top priority" as the company focuses on resolving regulatory issues at various manufacturing plants.
"Our focus continues on regulatory efforts in Goa and Indore. Earlier in this quarter, we have updated you of the warning letter we had received for the Indore facility, which was audited in February '23," he stated.
The company has duly responded to queries from USFDA and are now focusing on remediation, Vohra said.
For the October-December quarter, the drug firm reported total revenue from operations at Rs 6,604 crore as compared with Rs 5,810 crore in the year-ago period. Its consolidated net profit rose by 32 per cent to Rs 1,056 crore for the December quarter as against Rs 801 crore in the year-ago period.
Read also: Cipla subsidiaries incorporate wholly owned subsidiary in Mexico
Original news source: https://www.ptinews.com/story/business/cipla-eyes-acquisitions-inorganic-partnerships-in-us-market/1265027
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