Cipla: Capturing the Global AIDS Drugs Market

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Case Details:

Case Code : MKTA009
Case Length : 14 Pages
Period : 2003-2004
Pub Date : 2004
Teaching Note :Not Available
Organization : Cipla
Industry : Pharmaceuticals
Countries : Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Generics opportunity

Cipla's success was driven largely by its generic pharmaceutical business. Over the years, Cipla had produced generic versions of high-demand Western medications such as Viagra, Prozac, Diflucan, Prilosec, Norvasc and the like-pharmaceuticals that were originally patented or licensed by western multinationals, including Pfizer, Eli Lilly & Co., and Warner-Lambert Co. Cipla sold these products primarily in India, but looked for opportunities to export to developing countries with patent laws similar to those in India...

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Globalization

India's leading pharmaceutical companies aggressively looked for overseas markets. Cipla was no exception. Cipla's exports for the financial year ended March 31, 2003 amounted to Rs.5,660 million. The company's manufacturing facilities had been approved by various regulatory authorities including, Food and Drug Administration (FDA), USA, Medicines Control Agency (MCA), UK, Therapeutic Goods Administration (TGA), Australia, Medicines Control Council (MCC), South Africa, National Institute of Pharmacy (NIP), Hungary, Pharamaceutical Inspection Convention (PIC), Germany, World Health Organization (WHO), State Institute for the Control of Drugs, Slovak Republic and ANVISA, Brazil. Cipla had already filed 11 abbreviated new drug applications (ANDAs) in the US market...

HIV Drugs

Troubled by the rapid growth of AIDS cases in India. Cipla decided to work on an affordable alternative.

Cipla joined the fight against AIDS in 1992, when it announced that it had reverse-engineered AZT and was ready to begin manufacturing.

Cipla launched a generic version in India in November 1992 at $2 or one-sixth the prevailing price of $12 for the required dosage of four daily tablets. But even at $2 per day, AIDS patients in India could not afford the therapy...

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