RESULTS: Cipla Medpro

Johannesburg, Mar 18 (I-Net Bridge) - Pharmaceutical company Cipla Medpro (CMP) on Thursday reported diluted headline earnings per share of 36.5 cents for the year ended December 2009 from 29.1 cents a year ago - an increase of 25%.

The group’s revenue was up 27% to 1.262 billion rand and gross profit increased by 25.7% to 620.4 million rand, even though the gross profit margin declined slightly to 49.2% from 49.6%. Headline earnings increased 25.7% to 160.9 million rand.

Currently all earnings generated are utilised to repay debt and fund growth opportunities, so no dividend was declared.

The company said this performance was achieved under trying circumstances given the Adcock bid process and a weak exchange rate in the first half of the year.

Cipla Medpro Holdings saw positive results despite adverse market conditions. Cipla Medpro retained its standing as the fastest growing pharmaceutical company in South Africa and the fourth largest by value.

The Total Private Market grew at 13.6% (Rand value) between January and December 2009, while the Cipla Medpro business grew at 31.9% according to IMS, and its Evolution Index was 116,1, the highest of the top 30 pharmaceutical companies.    During November 2009, the company achieved year to date sales of one billion rand.

The group said the relationship with Cipla India continues to deliver research and development on newer generics, the launch of first to market patent expired molecules and over the counter (OTC) medicines.

A significant collaboration agreement has been concluded with Biomab/Desano of China which will open up the doors to their extensive range of biosimilars, biotechnology and monoclonal antibodies. The top ten Cipla Medpro products by value, some as old as ten years, continue to grow in units, which is very rewarding given our strategy of building brands, the company said.

2009 saw a number of significant product launches including Cipla-Oseltamivir, an antiviral influenza medication listed on the World Health Organisation’s Prequalified Products list; and Ciplatrim, a weight loss medication launched in partnership with  Weigh-Less.

Cipla Medpro will add an oncology division to its already comprehensive medicines portfolio in 2010/2011, it said.

In the last quarter of 2009, Cipla Medpro was awarded first-time state tenders for  AlkaFizz, Gastrolyte and Acitop. The company also obtained tenders under the RT297 for the supply of insulin needles and the RT290 oncology tender for the provision of cytoplastin.

While the group was already exporting to Namibia, Botswana, Lesotho and Swaziland, during 2009 the African Trade division commenced obtaining regulatory approvals in various countries, including Kenya, Zambia, Uganda, Nigeria and Ireland. Dossiers have been submitted, key trading partners have been appointed in each country and this division is ready to commence trading as soon as dossiers are registered.

This division focuses on the large emerging middle class market looking for high quality, cost effective OTC products, such as Gelacid and AlkaFizz, which are produced in the group’s Durban manufacturing facility. These new markets will increase manufacturing demand within the manufacturing facility, it said.

I-Net Bridge, Tel: +27-11-280-0644, newsdesk@inet.co.za

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