Forbes Emergent 25: Under Samina Vaziralli’s Guidance, Cipla Gets A Shot-In-The-Arm From US Acquisition
In 2011, Samina Vaziralli, a third-generation scion at Cipla, was being groomed for succession with her younger brother. Four years later he stepped out, leaving her to take on the legacy of India’s third-largest pharma company.
By 2016 Vaziralli had moved to the highest executive post, vice chairman, at the Mumbai outfit and charted an expansion course encompassing India, the U.S. and South Africa — with China and Brazil also in her sights. That included spearheading the company’s entry into the U.S. in 2015 through the acquisition of two generic-drug makers valued at a total of $550 million.
Until then, Cipla — which makes drugs to treat respiratory and cardiovascular diseases as well as cancer, malaria, and AIDS — had worked with partners in the U.S., the world’s largest pharma market, handling R&D and manufacturing but selling the drugs under its partners’ labels. “The value was all in the front-end and we wanted to own the front-end,” says Vaziralli. “We had the capability and the technology. So we decided to launch ourselves.”
The results are there to see. Revenue from the North American market has surged to $392 million in the year ended March 31, 2017, from $148 million in the year ended March 31, 2015. North America contributes 18% of total revenue, and there’s more to come as Cipla has 97 drugs awaiting final approvals from the U.S. Food and Drug Administration. A further 40% of revenue comes from the domestic market and about 12% from its South Africa portfolio. For the first nine months of hibefiscal 2018, revenue from the maker of branded and generic drugs rose 13% to $1.8 billion, while net profit rose 22% to $198 million.
Vaziralli, 42, didn’t grow up with the idea of running the company, which was founded by her paternal grandfather in 1935. She did an undergraduate degree in commerce at Mumbai’s Sydenham College, then headed to the London School of Economics in 1998 for a Master’s in finance, joining Goldman Sachs in London right after. She moved a couple of years later to their New York office, then returned to India in 2004 and took a break from work to focus on family.
In 2011 she joined Cipla, where her uncle, Y.K. Hamied, is non-executive chairman and her father, M.K. Hamied, is non-executive vice chairman. The family, which has a $2.5 billion net worth stemming from a 37% stake in Cipla, decided to hand over operational control to professionals at that time. Vaziralli started shadowing her uncle and father and soon became the company’s global head of strategy and M&A.
It was a rocky period marked by top-level exits and changes in business direction. Vaziralli steadied the boat by building a second and third line of professionals. Cipla hired a CEO with whom she works closely; he handles operations and she acts as the bridge between family and management as well as family and the board. In 2015, her brother, Kamil Hamied, left to become a venture capital investor in London, something he had flagged a year before. The transition “was fairly easy,” Vaziralli says.
A key element of the Cipla legacy is affordable drugs, in particular life-saving HIV drugs, primarily in Africa. It’s seen as a savior in countries like Uganda, which were ravaged by AIDS. “There was a time when the (Ugandan) capital city of Kampala would be lined with coffin makers — when you drove up from the airport,” says Vaziralli. All that changed when Cipla made antiretroviral drugs available for less than $1 a day. “In Dr. Hamied’s words, what’s the use of developing lifesaving medicines if you can’t make them affordable to the patients?” asks Vaziralli, quoting her uncle.
As a woman in business, Vaziralli says one of the key strategies she uses for work-life balance is to set priorities. “Everyday you have to make a choice — a choice to embrace one thing and to let go of another,” she says. “You also have to create a support system.”
Her two sons sometimes do homework at the Cipla headquarters, or drop in to have lunch with her. She also makes time to attend squash tournaments with her elder son, a nationally ranked player, and whips up pastries over weekends with her younger son. And she finds respite in exercise, running three or four half-marathons every year. “My best thinking and focus has come when I am running,” she says.
This article originally appeared in Forbes Asia.
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Cipla Announces Q4 & FY18 Results
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Cipla Limited (BSE: 500087, NSE: CIPLA) today announced its audited consolidated financial results for the full year and quarter ended March 31, 2018.
The Company reported full year revenues of Rs 15,219 crores, growing 6%# y-o-y. EBITDA margins, before exceptional items, increased by over 160bps to 18.6%. For the quarter ended March 31, the Company reported revenues of Rs 3,698 crores, growing 5%# y-o-y. The R&D investments in the quarter ramped up to ~7.6% of revenues. Key markets including India and South Africa continued to deliver strong growth.
“This financial year, our focus remained on strengthening our portfolio and deepening our presence in priority markets. We are happy that our efforts on cost and efficiency improvement helped us deliver the full year margin ahead of our guidance range. Our focus for next year will be to continue our growth trajectory in key markets and investments in portfolio for sustainable growth. We continue to strive to make a difference to patients through meeting unmet needs and our continuing focus on quality & innovation”
– Umang Vohra MD and Global CEO, Cipla Ltd.
Overall P&L (in INR Cr)
- FY18 EBITDA, before exceptional items, grew by 14.2% on a year on year basis with PAT growing by 40% .
- Strong momentum continues across key markets with India business delivering a strong quarter with growth at ~21% (GST Adjusted) y-o-y. South Africa, API, Europe and Sub-Saharan markets continued strong momentum. The US business saw launches of key products.
- South Africa business delivered yet another record quarter of R1bn+ sales (adjusted for one-offs) recording 18% growth for Q4 vs last year in US$ terms.
- Strong pipeline maintained during the year with 24 new filings during the year.
- Focused efforts towards building a strong Specialty portfolio for US. Steady progress in development of Tizanidine patch.
- R&D investment for this quarter stood at ~7.6% of revenues. Increase was driven by clinical trial charges related to Advair among others.
How Cipla’s Self-Learning And Continuous Learning Approach Is A Game-Changer
Learnability is the biggest skill one can possess in the hyper-dynamic times that we exist in. There is a need for people to quickly learn and unlearn, and re-invent themselves if they seek to survive in the professional arena. At the same time, owing to how automation and technology are changing the nature of jobs, even organisations need to focus on continuously adding to the knowledge and skills of their people to stop them from becoming redundant. Gone are the days when learning and development were seen as a cost burden. It has now become essential for businesses that seek to sustain and grow in the existing volatile business scenario.
Cipla has been transforming its approach towards learning through focused efforts by its learning and development arm, Cipla University. In line with its philosophy of continuous learning, Cipla University believes in offering best-in-class training while promoting continuous learning that would enable all its associates as well as the organization on the whole Learn-Excel-Grow in a regular manner. This would not just lead to performance excellence in the present, but more importantly make individuals and the organization, future ready as well.
Hemalakshmi Raju, head- learning and development, Cipla says, “It’s not knowledge but a continuous learning approach that provides a competitive advantage.”
Raju shares that the organisation observed that there was a hunger for learning, and people needed guidance to be more efficient at what they do. More so, as the sales representatives in the pharmaceutical industry are mostly on the field and spend a significant amount of time, on-the-go. In addition, they have to deal with people who are way more qualified than them — the doctors. Even more challenging is the fact that their interaction window is limited to a few minutes versus the wait time that may be an hour or more.
It’s not knowledge but a continuous learning approach that provides a competitive advantage.
“Keeping all these challenges in mind, we realised that the field force required learning on the go such that they have anytime, anywhere access to relevant content. We launched mobile learning for the field force, a year ago. It allows them to utilise their wait time for learning, along with constant self-assessment on the same,” Raju explains.
The Company follows the 70:20:10 principle for its learning initiatives, and focuses majorly on continuous learning and self-learning. It has a unique programme called ‘Keep educating yourself’, under which it has provided its people access to a set of curated MOOCs. ‘My learning challenge’ is another unique initiative, that was organized sometime back, wherein employees could enroll themselves, pick a topic of their choice and spend at least half an hour every day, for ten days, learning the same.
Raju shares that over 250 people had enrolled for this programme across the globe, of which the best 10 were selected as learning champions. “The idea behind all these initiatives has been to inculcate in our people a habit of learning on their own,” Raju opines.
Cipla recently organised a learning expo at its office in Mumbai, with an aim to encourage self-learning and learning on the go. The event attempted to sensitise people and orient them to utilise various tools for self-learning through gamification.
Raju shares that the buy-in from the top management towards these digital learning efforts is extremely high and Cipla’s CEO, Umang Vohra and group chief people officer, Prabir Jha are strong proponents and ambassadors of the same
Looking ahead, Cipla is planning to organise social-learning drives, through digital platforms. It will include strong peer-to-peer learning through ‘tag and learn’ initiatives.
“Learning is not just about individual capability building but organisational capacity building” is a strong perspective held by Jha and Raju feels that Learning On the Go will be a key lever in bringing this alive.
This article originally appeared in HR Katha.
5 Ways To Create A Positive Image At Work
Employees who exhibit positive behaviour at work not only tend to be more productive than others but also encourage others to push themselves harder.
Here are tips from experts on how to wear just the right attitude at work.
1. Organisational Culture
Every organisation has its individual work culture. “As an employee, do your best to understand the values behind it and try actively to be part of it,” says Sashi Kumar, managing director, Indeed India. “You must demonstrate willingness to work towards the company’s goals and its larger vision.
2. Be Vibrant & Lively
Don’t be dull at the workplace. “Show energy, initiative and enthusiasm. This strength is infectious and attracts people. Conversely, cynicism, cribbing and endless moaning destroy your image,” says Prabir Jha, global chief people officer, Cipla.
3. Company Counts
Never forget that the people you hang out with define you in a way. It is very important to keep the right company. “Be seen as one who attracts good talent and works with high-performers. You do get a positive rub-off from this,” says Jha.
4. Be Meticulous
“Staying on top of your assignments will not only help create a stress-free environment for yourself and others working with you but also allow leeway for you to explore new avenues of work,” says Kumar. “Everyone loves a person who consistently over-delivers,” says Jha.
5. Go the Extra Mile
“Positive thinking, even in difficult situations, can help showcase your professional maturity to supervisors and garner trust from your colleagues. Having an approachable manner can encourage peers and subordinates to seek advice,” says Kumar.
This article originally appeared in the Economic Times.
Cipla Partners With Mannkind For Exclusive Marketing, Distribution Of Afrezza®, Innovative Inhaled Insulin
Cipla Limited today announced that it has entered into an exclusive marketing and distribution agreement with US-based MannKind Corporation for Afrezza® in India. Afrezza® is the only USFDA approved inhaled insulin available for patients suffering from diabetes. “Cipla is committed to providing access to innovative medicines and newer drug delivery systems to the patients. Afrezza, an inhaled insulin, is a cutting-edge product which will increase patient convenience,” said Umang Vohra, MD & Global CEO, Cipla Ltd. “The innovative drug delivery system will revolutionize the diabetic care in India. This partnership with MannKind is another step from Cipla to cater to the unmet needs of the patients.”
“Our agreement with Cipla for Afrezza provides us with a long-term partner with a wealth of knowledge and experience in diabetes. Cipla is a leader across therapies in India with an established sales, marketing and distribution network. With this partnership, Cipla will leverage its strength in inhalation and extend it to diabetes therapy, stated Michael Castagna, Chief Executive Officer of MannKind. “The International Diabetes Federation estimates that 425 million people are currently living with diabetes worldwide, including 73 million in India. This agreement with Cipla, our second international partnership agreement for Afrezza, extends the potential opportunity for approximately 1 out of 4 people of the worldwide population with diabetes to manage their disease with our novel mealtime insulin, when combined with our earlier agreement in Brazil and our own efforts in the United States.” Under the agreement, Cipla will be responsible for obtaining regulatory approvals to distribute Afrezza® in India, including approval from the Drug Controller General of India (DCGI). Cipla will also be responsible for all marketing and sales activities of Afrezza in India. MannKind is responsible for supplying Afrezza to Cipla.
Available by prescription, Afrezza® (insulin human) Inhalation Powder is a rapid-acting inhaled insulin indicated to improve glycemic control in adult patients with diabetes mellitus. Afrezza consists of a dry powder formulation of human insulin delivered from a small and portable inhaler.
Administered at the beginning of a meal, Afrezza dissolves rapidly upon inhalation to the lung and passes quickly into the bloodstream (in less than one minute). This rapid absorption allows Afrezza to begin reducing blood sugar levels within about 12 minutes of administration. Afrezza is available in 4-unit, 8-unit and 12-unit single-dose cartridges of insulin powder that can be used, as prescribed by a health care professional, in combination with other diabetes medications to achieve target blood sugar levels. For Afrezza doses exceeding 12 units, patients may use a combination of existing cartridge strengths. For more information on Afrezza, please visit www.afrezza.com