cipla

CIPLA Ltd

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PRESENTED BY:

CYRIL SCARIASHUBHAM GUPTAABHAY PRATAP

Agenda

Introduction SWOT : Cipla Ltd Act/ Regulations Past & Ongoing Sustainability

Practices Sustainability Framework

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Introduction: Cipla Ltd One of the world’s largest generic companies. Over 2,000 products, 65 therapeutic categories,

over 40 dosage forms. 34 state-of-the-art manufacturing facilities

approved by major international regulatory agencies.

Continuous innovation in R&D; over 20 world firsts. Turnover(USD)-1.4 billion having 20,000

employees. Approvals-US FDA, WHO-Geneva, MHRA-UK, TGA-

Australia, SUKL-Slovak Republic, APVMA-Australia, among others

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Key Ponits: Cipla Ltd. Cipla, world’s largest generic pharmaceutical

companies was established in 1935. With the vision of making India self-reliant and

self-sufficient in healthcare. Cipla serves doctors and patients in over 183

countries.. Sustainability is an integral part of Cipla’s

business strategy by improving the quality of life for society at large.

The Company has reduced the price of anti-AIDs and Anti-asthma drugs five times through technological advancements.

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SWOT Analysis5

KEY RISK

An unfavorable court ruling in an ongoing litigation between the Government of India and Cipla regarding alleged overcharging of certain drugs could potentially pressurize the Company’s bottom line.

If the cost of raw material keep on increasing due to increased pressure on Chinese companies to move to higher level drugs, companies margin will be hit drastically.

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Act/ Regulations

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Companies Bill, 20128

Companies Bill, 2012

If the company fails to spend such amount the Board shall give in its report the reasons for the same making it a binding obligation on the Board

This covers the pharmaceutical companies as well

Such a company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy

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The Pharmacy Act, 1948 An Act to regulate the profession of pharmacy Persons, having no knowledge and having no

education in pharmacy or pharmaceutical chemistry or pharmacology, were engaged in this profession

This was affecting health of individuals by wrong compounding, mixing or dispensing

This, in turn, will enable them to proactively work towards reducing drug induced diseases

The bill proposes higher government funding to invest in training pharmacists.

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Consumer Protection Act (CPA) related to Medical Profession Fast pace of commercialization and

globalization on all spheres of life has affected the medical as well

Consumer means Any "person" who hires or ails of any services/products for a consideration which has been paid or promised or partly paid and partly promised

Any fault, imperfection, short coming or inadequacy in the quality, nature and manner of performance will be covered by this act

Litigations can be filed against doctors/hospitals/ companies in case of above mentioned deficiencies.

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Drugs & Cosmetics Act 1940

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The Environment (Protection) Act, 1986

To provide the protection and improvement of environment

To safeguard the forests and wildlife of the country The Air (prevention and Control of Pollution) Act was

passed in 1981 to Control Air Pollution Standards for emission or discharge of

environmental shall be complied with by an industry A company shall not exceed the relevant

concentration of pollutant in ambient air The Water (Prevention and Control of Pollution) Act

was passed in 1974. It aimed at maintaining the purity of water by preventing water pollution

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Narcotic Drugs and Psychotropic Substances Act (1985) It is illegal for a person to produce/ manufacture/

cultivate, possess, sell, purchase, transport, store, and/or consume any narcotic drug or psychotropic substance

Cultivation/production/manufacture, possession, sale, purchase, transport, storage, consumption or distribution of any of the following substances such as :

Codeine, Beta prodine, Morphine etc.

are banned under the act.

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CIPLA’S Past & Ongoing Sustainability Practices

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Sustainability Sustainability is an integral part of Cipla’s business strategy.

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Sustainability 17

Sustainability 18

Corporate Social Responsibility

The Cipla Palliative Care and Training Centre

Provides holistic care to terminally ill cancer patients and their families free of charge.

Till now the Centre has given treatment, comfort and solace to more than 7,700 patients.

Cipla extends support to Manavya

A Pune-based organization which runs a home for children with HIV infection.

Cipla Foundation

Set up by Cipla’s contribution of Rs. 5 Crores.

Aims to provide care and financial support to people in need of healthcare and education in India.

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The company made a breakthrough in reducing the prices of cancer drugs

In order to make drugs for malaria, HIV/AIDS and several neglected diseases, available at affordable prices, CIPLA works closely with several reputed non-profit organizations such as

Drugs for Neglected Diseases Initiative

Medecins Sans Frontieres

Clinton Foundation

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Pollution All efforts are made to ensure that no uncontrolled

products or chemicals pollute the environment.

Emergency procedures and spills kits are available on-site.

Waste management All waste is sent to designated sites and is tracked

on a monthly basis.

A separate upgraded high-hazard waste area is being built

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The carbon footprint exercise A power correction factor is in the process of being

implemented

Currently, electric boilers are used on-site, with the plan to use only one of these to save on electrical consumption.

Monthly inspections are carried out on all utility lines to ensure optimal efficiency of the energy services

ISO 14000 principles are being implemented in preparation for future certification.

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CORPORATE SOCIAL INVESTMENT 23

CORPORATE SOCIAL INVESTMENT 24

Past & Some Potential Future Challenges for CIPLA

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CHALLENGES 26

Past Challenges

1. INDIAN PATENTS ACT, 2005

2. BAYER PHARMACEUTICALS

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INDIAN PATENTS ACT, 200528

BAYER PHARMACEUTICALS

German pharmaceutical giant Bayer sued Cipla for patent infringement.

Low prices of cancer drug Nexavar by Cipla.

76% of the price was slashed by Cipla at 1710.₹ Not a violation of TRIPS agreement.

Cipla was appreciated by European medical relief and charity organizations.

The price was fixed at 8800 for 120 tablets compared to ₹280000 by Bayer.₹

6% royalty on the net sales to the patent holder.

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PLANS TO EXPAND OVERSEAS30

Business Sustainability Framework for CIPLA

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Business Sustainability Framework 3

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Moving Toward Business Sustainability

Cipla Ltd needs to enhance its probability of achieving business success and sustainability

Move through several phases, during which it progressively broadens the scope of its approach Quality management

Business excellence

Business sustainability

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Framework for Sustainability: Cipla Ltd

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Good Practice Framework

This framework will consist of four areas:

Affordability of essential medicinesInvestment in R&DPharmaceutical company impacts on the ground in

developing countriesImportance of reporting

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Affordability of essential medicines 3

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Research and Development As per framework Cipla Ltd Should:

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Impact in developing countries

Cipla should:

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Reporting and Verification

As per the framework Cipla Should:

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Thank you

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