Drugmaker Cipla expects to put the “slow seasonal growth” of its ‘One India’ business in the last quarter behind it, even as it looks to resolve supply issues involving its generic Lanreotide in the US, company management said, on issues facing them in two key regions.

The company’s “One India” business witnessed “a historically slow seasonal growth”, especially in the acute category. “In anti-infectives, one of our largest therapies, the market growth came at 4.9 percent as against the last year growth of over 12 percent ,” said Umang Vohra, Cipla Managing Director and Global Chief Executive Officer.  “This impacted both our branded prescription as well as the trade generics business. On an overall basis, One India growth stood at 5 percent,” he said. Cipla’s One India business includes its branded prescription, trade generics and consumer health businesses.

“With the revival in the season and the respiratory uptick starting in quarter three of this year, we should revert back to our growth trajectory. While we are seeing slower growth, we have continued to invest both in field force and investments in the field. Our number of people on the field has now reached 8,700 people,” he said.

Cipla’s revenues were ₹7,051 crore in the second quarter for three months ended September 30th, 2024, up 9 percent. Its One India business earned ₹2,948 crore in the period under review, accounting for 42 per cent of its revenue in Q2FY25. It clocked ₹1,303 crore as profit after tax (PAT), up almost 17 per cent, over the same period last year.

Giving an overview, Vohra said, the company was on track to achieve its margin guidance for the year,  “between 24.5 %, 25.5%.”  The last 12 months, he said,  “have been audit heavy with our facilities of Invagen, Kurkumbh, Patalganga, China and Goa audited. All these facilities have cleared with either a VAI (Voluntary Action Indicated) or NAI (No Action Indicated) except for Goa where the classification is still awaited.” Further, on Lanreotide, he added that the company was in the process of resolving its supply issues.

Supply issues

Cipla’s generic version of Lanreotide injection is indicated to treat Acromegaly (defined by medical institutions as a rare condition involving too much growth hormone in the body) and Gastroenteropancreatic Neuroendocrine Tumors. In May 2024, Cipla received US regulatory approval for the generic equivalent of this product. Lanreotide is from biopharmaceutical company Ispen, sold as Somatuline Depot.

On issues involving Lanreotide, Vohra explained, “Currently, we are facing some supply challenges in Lanreotide, and hence we expect the Q3 Lanreotide franchise sales to be lower than Q2. However, these issues are anticipated to be resolved by the end of Q3, and starting quarter four FY25, we should be able to recover sharply in the Lanreotide franchise. We’re also working to increase the overall capacity of Lanreotide through capex investments made by our partner.”  Industry estimates pegged  US sales of Somatuline Depot (Lanreotide) at about $ 898 million, for the 12 months upto March 2024.

Cipla’s US business posted $237 million in revenues in the quarter, its South Africa region grew 22 per cent, led by the private market and the emerging markets and Europe delivered 18 per cent growth, said Vohra, adding that the focus will be on growing key markets and building flagship brands, among other things.

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