Cipla is setting ambitious targets for its innovation-led product portfolio as part of its strategic diversification efforts. According to CEO Achin Gupta, the company aims to derive 10% of its revenue from innovation-led products over the next five years. As reported by CNBC TV18, this move comes as Indian pharmaceutical companies increasingly seek to move up the value chain through differentiated products and innovation while continuing to rely on generic medicines for the bulk of their revenues.
The innovation push is accompanied by significant manufacturing capacity expansion in the United States, a market that accounts for a significant share of the company's exports. According to Gupta, Cipla now operates four manufacturing facilities in the US as part of a broader strategy to diversify production and reduce supply-chain risks. The expansion aligns with growing preference among governments and healthcare systems for local manufacturing of critical medicines and complex drug products.
The US manufacturing expansion includes plans to locally produce key respiratory products for the American market. As reported by CNBC TV18, some of Cipla's key respiratory products for the US market are expected to be manufactured locally, including the company's recently approved generic version of Ventolin and its anticipated generic version of Advair. Gupta explained that this localization strategy provides flexibility by allowing the company to take more complex dosage forms closer to the market.
The company is implementing comprehensive measures to reduce dependence on single suppliers following regulatory challenges. According to Gupta, Cipla is working to restore supplies of Lanreotide after its Greek supplier, Pharmathen, received a warning letter from the US Food and Drug Administration. The company has begun working with an alternative contract manufacturer in the US as part of efforts to reduce dependence on a single supplier, with Gupta expressing confidence that this two-pronged approach will restore the product to market.
The company's manufacturing capabilities span multiple global locations, with significant production destined for the US market. As reported by CNBC TV18, the company's Goa facility, one of its largest manufacturing sites, currently supplies products across India, the US, Europe, Asia and Latin America. Gupta noted that nearly half of the production from the facility is destined for the US market, with the remainder catering to other global markets.
