Cipla Limited Q2 FY23 Earnings Conference Call Insights

Key highlights from Cipla Limited (CIPLA) Q2 FY23 Earnings Concall

Management Update:

• [00:02:21] CIPLA reported the highest quarterly revenue historically of INR5,829 crores.

Q&A Highlights:

• [00:18:50] Tushar Manudhane from Motilal Oswal asked about the outlook for 2H23 on the GM front and if there is any revision in the EBITDA margin guidance. Ashish Adukia Global CFO said CIPLA doesn’t give GM guidance, but EBITDA margin will be in the range of 21-22%.

 

• [00:19:40] Tushar Manudhane from Motilal Oswal also asked about Lanreotide, if there was any price erosion happening due to competition. Umang Vohra MD clarified it was nothing significant over 1Q23.

 

• [00:20:15] Prakash Agarwal with Axis Capital enquired about the update on Advair. Umang Vohra MD answered that the company is looking at it in 2H23. And CIPLA is sticking pretty much to that guidance today.

 

• [00:24:04] Kunal Dhamesha from Macquarie enquired if CIPLA will be increasing its aspiration or market share in Lanreotide. Umang Vohra MD said the company was at 4% last quarter and close to 10% in 2Q23. CIPLA is assuming an absolute progression trying to get as close as possible to the guidance given of around 15%.

 

• [00:24:40]  Kunal Dhamesha from Macquarie  also asked about the addressable market size of Lupride Depot injection and aspirations there. Umang Vohra MD said the company already has an infrastructure created for Lanreotide and it expects that infrastructure to support leuprolide. On the market, the full market is somewhere around $200 million odd.

 

• [00:28:46] Neha Manpuria with Bank of America asked that if CIPLA will increase on R&D further from the current run rate, given the progression on respiratory assets. Umang Vohra MD answered that this run rate of 5.8% is likely to continue for rest of the year.

 

• [00:35:05] Surya Patra from PhillipCapital asked about Revlimid, if CIPLA is expecting a second wave of generic launches before the patent expiry. Umang Vohra MD answered that it cannot be said with certainty, but would like to believe that there could be more people entering the market.

 

• [00:41:47] Damayanti Kerai of HSBC enquired how soon any of the R&D peptide products will be coming into launch. Umang Vohra MD answered that the first set of launches there hopefully will be towards the later part of the first half of FY24.

 

• [00:44:01]  Nithya Balasubramanian from Bernstein asked about the partner asset, when CIPLA is expecting the partner respiratory asset to be launched in the market. Umang Vohra MD said it may take, another nine-month time period.

 

• [00:47:17] Prakash Agarwal from Axis Capital enquired that on Advair, once approval comes through, if NRx will be more critical or there will be a chance to take share from the other players also. Umang Vohra MD answered that it logically should be from both sources.

 

• [00:49:13] Prakash Agarwal from Axis Capital enquired about the PLI outlook.  Umang Vohra MD replied it has a margin benefit that’s coming. Also, some of the launches are not exactly from the facilities in India. So there is no huge benefit coming on account of that.

 

• [00:50:20] Vivek Agrawal of Citigroup enquired that in the US market, when CIPLA expects to file the next inhaler asset that is currently under clinical trials. Umang Vohra MD said that it will be towards second half of next calendar year.