Execution of Multiple Therapies led to robust growth in Q2: Kedar Upadhye, Global CFO, Cipla Limited

Kedar Upadhye, Global Chief Financial Officer, Cipla Limited, talks about September quarter results, expectations for next two quarters and USFDA observation in Goa plant among others during an interview with Mansee Dave, Zee Business. Edited Excerpts:

Q: Domestic market has performed well in the second quarter. Is this driven by volume growth or there was some price hike?

A: Our price hikes are in line with the regulatory announcements. Our price hikes are based on the NPPA norms for the price increase. However, increased execution of multiple therapies led to growth in this quarter. All therapies including respiratory, cardio and neurology have performed well. Seasonal factor also played a role in this growth. Secondly, our acute cluster business has performed well. So, the overall prescription business performance was good in this quarter. Largely, volume growth has been more for us while price growth has been low.

Q: What is the update on Trade channel impact for India Business? Also, inform us about the pipeline levels?

A: We have taken bold calls as there was a concentration in the distribution channel. This led to the appointment of new distributors, which led to an improvement in the commercial discipline of the generics business. The quality of our receivable has increased while our concentration has decreased. And, sequential sales growth the quarter-on-quarter (QoQ) basis has been more than almost 60%. If spill over's are adjusted then we are back to what we were last year. On a year-on-year (YoY), we are flat, but, we saw a 40% decline in the first quarter. So, the steps have been taken to put the commercial discipline in trade generic business which has benefitted us. 

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Q: We see a decline in North America Business on QoQ basis. What is the reason for this decline? Is the decline is the result of market share decline in gSensipar?

Q: What is the update on Goa plant Observations by USFDA?

A: Three auditors audited the Goa plant in September and their form 483 is lying in the public domain and we have submitted a robust and comprehensive response to it in the recent past. We will work with the agency to resolve the issues.