“SUCCESS STORY OF CADILA HEALTHCARE”

A Project Report submitted to Ishan Institute Of Management & Technology, Greater

Noida as a partial fulfilment of full time Post Graduate Diploma in Business
Management.

Submitted To: Submitted By:

Dr.D.K.Garg Monika Gautam

(Chairman), (Enr.no-15076)

IIMT, Gr.Noida

Ishan Institute of Management & Technology

1A, Knowledge park-1, Greater Noida, Distt: G.B. Nagar

Website: www.ishanfamily.com , E-mail: ishan_corporate@yahoo.com

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 TABLE OF CONTENTS

Serial No. Chapter Name Page No.

1 Origin & History Of the Business 3

2 Background of promoters 6

3 Product planning & expansion of products 6

4 Business Geography 7

5 R&D-Innovation of the company 8

6 Problems faced by the company 9

7 Competitors 9

8 Present Status of the company 14

9 Achievements 15

Soft copy verification from IT DEPARTMENT

Comment:

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ORIGIN & HISTORY OF THE BUSINESS

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Cadila Healthcare is an Indian pharmaceutical company head quartered at Ahmedabad in

Gujarat state of western India. The company is the fifth largest pharmaceutical company in

India. The Company is Flagship Company of Zydus Cadila Group.Cadila Laboratories was

founded in 1952 by Ramanbhai Patel (1925-2001), formerly a lecturer in the L.M. College of

Pharmacy, and his business partner Shri Indravadan Modi.

The Company was incorporated as Cadila Healthcare Private Ltd. On May 15, under the

Company act, 1956 and subsequently the Company was converted into a public company and

then renamed as Cadila Healthcare Ltd. effective from July 17, 1996.

From nine pharmaceutical production operations in India as well as a major R&D operation

Zydus Cadila develops and manufactures a large range of pharmaceuticals as well as

diagnostics, herbal products, skin care products and other OTC products.Zydus Cadila's

major shareholder remains the Patel family. Pankaj Patel (1951), son of the founder, is CEO.

In 2004 Pankaj Patel was included by Forbes magazine in its annual List of India’s richest

people. Forbes estimated Patel's net worth at US$510m, making him India's 26 th richest

person. However in 2005 Patel dropped off the Forbes list due to a fall in the Stock price of

Cadila Healthcare. Moreover, there is a team of 9 senior level executives –

Known as The Executive Committee, who are heads of different operations look after the

overall management processes. None of the members except Pankaj Patel are on Board of

Directors. Recently, in September 2007 Cadila in a joint venture opened a pharmaceutical

plant in Ethiopia.

Activities since 2005:

2005

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- Zydus Cadila receives approval from the USFDA to market the anti-hypertensive drug

Atenolol, and an anti-infective drug, Clindamycin on 31 Jan and 1 Feb.

-Zydus Cadila unveils 'Pitavastatin' to control cholesterol on February 21, 2005

-Cadila ties up with Tyco unit to sell generic drugs in US

- Launches NuPatch - India's first indigenously manufactured Diclofenac transdermal patch

for pain relief.

-Cadila Healthcare & Mayne signs agreement to set up JVC to manufacture specialty

oncology products

-Cadila Healthcare - German Remedies launches Fludara Oral for Lymphocytic Leukaemia

-Zydus Cadila receives tentative approval for Divalproex Sodium DR Tablets from US FDA

-Cadila Healthcare receives approval for Promethazine Tablets from USFDA

-Cadila Healthcare enters into JV with BSVL

2006

-Zydus Cadila forges alliance with French firm

-Zydus Cadila receives USFDA approval for Simvastatin Tablets

-Zydus Cadila to acquire Nutralite - India's largest selling cholesterol-free margarine

-Sarabhai Zydus to roll out immuno-diagnostics kits

2007

-Cadila Healthcare Ltd on April 19, 2007 has announced the acquisition of Nippon Universal

Pharmaceutical Ltd.

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 - Cadila Healthcare Ltd has announced that its second overseas acquisition this year, the

Company signed an agreement to acquire 100% stake in Quimica e Farmaceutica Nikkho do

Brasil Ltda.

-Zydus Cadila acquires Nippon Universal, strengthens its presence in Japan

-Zydus Cadila, the first to launch revolutionary anti-obesity drug Slimona in India

-Zydus Cadila acquires Brazilian Company Nikkho

2008

-Zylus Cadila, Karo Bio to jointly develop new drugs

-Zydus Cadila & Karo Bio of Sweden sign research agreement for a novel drug to treat

inflammatory diseases

-Zydus Cadila acquires Etna Biotech, a subsidiary of Crucell N.V.

-Zydus scores with first day launch of Venlafaxine Hydrochloride in the US

2009

-Zydus Cadila announces research collaboration to discover and develop new cardiovascular

medicines

-Zydus Research Centre Receives AAALAC Accreditation

2010

-CHL announces Bonus Shares in the ratio of 1:2

- India unveiled its first indigenous H1N1 vaccine, which was developed by drug firm Cadila

Healthcare and this vaccine will provide immunity from the H1N1 virus strain for one year.

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BACKGROUND OF PROMOTERS

Cadila Healthcare was established by Ramabhai Patel. Ramanbhai B. Patel (19 August 1925–

19 September 2001) was an Indian chemist who founded the operation that eventually

became the Ahmedabad-based pharmaceutical company Cadila Healthcare.Patel was born at

Kathor in South Gujarat and studied chemistry at Gujarat University's L.M. College of

Pharmacy before becoming a lecturer there. With Indravadan Modi he founded Cadila

Laboratories in 1952.

Among the early achievements of Cadila Laboratories were the production of Isopar, a

formulation of the anti-tuberculosis drugs Isoniazid & Para-amino salicylic acid in 1957, and

Neuroxin-12, a single-vial mixture of vitamin B1, vitamin B6, and vitamin B12, in 1959. In

1973 the firm developed process technology to make the anti-diabetic drug glibenclamide,

while in 1977 the firm launched Dexona-20, which was a concentrated form of the anti-

inflammatory drug dexamethasone.

In 1995, after a disagreement between Patel and Modi, Cadila Laboratories was restructured

with the business being split two ways. Cadila Healthcare was set up to take the Patel's share

of the business and Cadila Pharmaceutical took Modi's share. Patel was Chairman and

Managing Director of Cadila Healthcare until his death. Cadila Healthcare went public on the

Bombay Stock Exchange in 2000.

PRODUCT PLANNING & EXPANSION OF PRODUCTS

From nine pharmaceutical production operations in India as well as a major R&D operation

Zydus Cadila develops and manufactures a large range of pharmaceuticals as well as

Diagnostics, herbal products, skin care products and other OTC products. The company also

makes EverYuth Naturals Walnut Scrub & Ultra Mild Scrub -India’s leading scrub brand ,

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EverYuth Naturals Golden Glow Peel-Off is the first cosmetic product in the peel-off

category in India and a face wash range .It is also the maker of Sugar Free, India's most

popular artificial sweetener, and Nutralite, India's most popular cholesterol-free margarine.

The company makes active pharmaceutical ingredients at three sites in India:

Ankleshwar plants - Zydus Cadila's plant complex at Ankleshwar in Bharuch District of

Gujarat, has been producing drug material since 1972. There are around 10 plants in the

complex, which is ISO 9002 and ISO 14001 certified as well as FDA Approved. Total plant

capacity at Ankleshwar is around 180 million tonnes.

Vadodara plant - Zydus Cadila's plant at Dhabhasa, in Vadodara District's Padra taluka (in

the eastern part of the district) in Gujarat, was commissioned in 1997 by a company called

Banyan Chemicals, and acquired by Zydus Cadila in 2002. The plant has a 90 million tonne

capacity. It is an FDA-approved facility that is also approved to WHO GMP guidelines.

Patalganga plant - Zydus Cadila acquired an API plant at Patalganga in Maharashtra state,

70 km from Mumbai, in the 2001 German Remedies deal. This plant operates to WHO GMP

standards.

BUSINESS GEOGRAPHY
Head office of Cadila healthcare is situated on its registered office i.e. Cadila Healthcare

Ltd.Zydus tower, Satellite cross roads, Ahmedabad-380015, Gujarat, India.

R & D- INNOVATION OF THE COMPANY

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The R & D Organisation has capabilities to conduct Drug Discovery and Development from

concept to IND enabling pre-clinical and clinical development.

Zydus Research Centre (ZRC) is the dedicated research and development arm of Zydus

Cadila, established in the year 2000.

At ZRC, research is mainly focussed on:

NME research:

• Metabolic Disorder

• Diabetes

• Obesity

• Dyslipidemia

• Inflammation and Pain

• Rheumatoid arthritis

• Pain

• Bacterial Infections

Biotechnology Research:

• Development of Biogeneric therapeutic proteins

• Development of Antibodies

• Development of Vaccines

• Search for Novel Targets

• Validation of Targets

Chemical Manufacturing and Control

Development of Novel processes for NME's from Medicinal Chemistry department.

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 • Chiral synthesis of drug and drug intermediates

• Resolution of racemates

• Studies in polymorphism of drug candidates

• Development of novel process of peptide drugs

Novel Drug Delivery Research

• Research in delivery of proteins and peptides

• Delivery of NME

PROBLEMS FACED BY THE COMPANY

• Increased number of players/competitors in the market.

• High clinical development costs coupled with declining drug discovery success rates.

• The imminent patent expiry of several major blockbuster drugs and the related rise of

cheaper generic alternatives.

• In presence of large number of players, product homogeneity severe market

environment, Marketing Innovation has become exceptionally difficult, leading time

to market is shortened, success often become obsolete.

COMPETITORS

There are three main competitors to Zydus cadila Pharmaceuticals, these are as follows:

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 1) Sun Pharma

2) Dr. Reddy’s Lab

3) Ranbaxy

SUN PHARMA:
Sun Pharma came into existence as a startup with just 5 products in 1983. In the time since, it

have crossed several milestones to emerge as one of the leading pharma companies in India, a

rank that it holds now been at for more than 5 years. (IMS-ORG Retail Store Audit, March

2006).

Profile:

They make speciality API & Pharmaceuticals for India, U.S & the world market

Group Companies:

Caraco, Sun Pharma Inc., &Sun Pharma Bangladesh are among their major group companies.

History:

Sun Pharma began in 1983 with just 3 product for the ailment of psychiatry.

Dr. Reddy’s Lab:

Established in 1984, Dr. Reddy’s Laboratories (NYSE: RDY) is an emerging global

pharmaceutical company.

As a fully integrated pharmaceutical company, our purpose is to provide affordable and

innovative medicines through our three core businesses:

• Pharmaceutical Services and Active Ingredients, comprising our Active

Pharmaceuticals and Custom Pharmaceuticals businesses;

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 • Global Generics, which includes branded and unbranded generics; and

• Proprietary Products, which includes New Chemical Entities (NCEs), Differentiated

Formulations and Generic Biopharmaceuticals.

Our products are marketed globally, with a focus on India, US, Europe and Russia. Dr.

Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular

indications, anti-infectives and inflammation.

Our strong portfolio of businesses, geographies and products gives us an edge in an

increasingly competitive global market and allows us to provide affordable medication to

people across the world, regardless of geographic and socio-economic barriers.

RANBAXY:
Company Profile

Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company, is an

integrated, research based, international pharmaceutical company, producing a wide range of

quality, affordable generic medicines, trusted by healthcare professionals and patients across

geographies. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the

world. The Company has a global footprint in 46 countries, world-class manufacturing

facilities in 7 countries and serves customers in over 125 countries.

In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator

companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical

powerhouse. The combined entity now ranks among the top 20 pharmaceutical companies,

globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it

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will emerge stronger in terms of its global reach and in its capabilities in drug development

and manufacturing.

Mission & Vision

Ranbaxy's mission is ‘To become a Research-based International Pharmaceutical

Company’.The Company is driven by its vision to ‘Achieve significant business in

proprietary prescription products by 2012 with a strong presence in developed markets’.

Financials

Ranbaxy was incorporated in 1961 and went public in 1973. For the year 2009, the Company

recorded Global Sales of US $ 1519 Mn. The Company has a balanced mix of revenues from

emerging and developed markets that contribute 54% and 39% respectively. In 2009, North

America, the Company's largest market contributed sales of US $ 397 Mn, followed by

Europe garnering US $ 269 Mn and Asia clocking sales of around US $ 441 Mn.

Strategy

Ranbaxy is focused on increasing the momentum in the generics business in its key markets

through organic and inorganic growth routes. Growth is well spread across geographies with

focus on developed and emerging markets. It is the Company’s constant endeavour to provide

a wide basket of generic and innovator products, leveraging the unique Hybrid Business

Model with Daiichi Sankyo. The Company will also increasingly focus in high growth

potential segments like Vaccines and Biogenerics. These new areas will add significant depth

to the existing product pipeline.

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R&D

Ranbaxy views its R&D capabilities as a vital component of its business strategy that will

provide a sustainable, long-term competitive advantage. The Company has a pool of over

1,200 R&D personnel engaged in path-breaking research.

Ranbaxy is among the few Indian pharmaceutical companies in India to have started its

research program in the late 70's, in support of its global ambitions. A first-of-its-kind world

class R&D centre was commissioned in 1994. Today, the Company has multi-disciplinary

R&D centers at Gurgaon, in India, with dedicated facilities for generics research and

innovative research. The R&D environment reflects its commitment to be a leader in the

generics space offering value added formulations and development of NDA/ANDAs, based

on its Novel Drug Delivery System (NDDS) research capability. Ranbaxy’s first significant

international success using the NDDS technology platform came in September 1999, when

the Company out-licensed its first once-a-day formulation to a multinational company.

In July 2010, Ranbaxy’s New Drug Discovery Research (NDDR) was transferred to Daiichi

Sankyo India Pharma Private Limited as part of the strategy to strengthen the global Research

and Development structure of the Daiichi Sankyo Group. While NDDR will now become an

integral part of Daiichi Sankyo Life Science Research Center in India, based in Gurgaon,

Ranbaxy will continue to independently develop and later commercialise the anti-malarial

new drug, Arterolane + PQP, which is currently in Phase III trials. Ranbaxy will also explore

the further development of late stage programs developed by NDDR in the last few years,

including the development programs in the GSK collaboration. Within Ranbaxy, R&D of

Generics will now get a sharper focus, as the Company is increasingly working on more

complex and specialist areas.

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People

The Company’s business philosophy based on delivering value to its stakeholders constantly

inspires its people to innovate, achieve excellence and set new global benchmarks. Driven by

the passion of it’s around 14,000 strong multicultural workforce comprising of over 50

nationalities, Ranbaxy continues to aggressively pursue its mission ‘To become a Research-

based International Pharmaceutical Company’.

PRESENT STATUS OF COMPANY & ITS ACHEIVEMENTS

Sales Turnover of Cadila Healthcare in March 06, March 07, March 08, March 09 & March

10 is Rs.1,338.80 Cr, Rs 538.20 Cr, Rs 1,758.20 Cr, Rs 1,781.50 Cr & Rs 1,908.00 Cr

respectively.

According to Moneycontrol.com profit & loss table as we can say Reported net profit is

increasing year by year i.e. in fiscal year 2006 net profit was Rs.164.90 crore, which

increased gradually to Rs.236.20 crore on fiscal 2008 & it finally increased to Rs.503.30

crore in fiscal year 2010.

This shows that there is a constant increase in its profit thus the company is reliable for

Investment.

SHARE PRICE ANALYSIS

According to moneycontrol.com Shares of cadila healthcare Ltd, was at a Price of Rs.683.85,

Rs.684.22, Rs.626.25, Rs.634.10, Rs.559.40, Rs.430.42 & Rs.361.62 per share 1 week ago, 2

weeks ago, 3 weeks ago, 1 month ago, 2 months ago 3 months ago & 3 months ago

respectively.

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As the above table shows the gain increased from 2.68% to 10.74%, which turned into

63.14% & finally to 94.18%.

Hence we can say that, share prices of Zydus cadila keep on increasing subsequently with

time & thus can be proved as a wise investment.

ACHEIVEMENTS OF BUSINESS

Proven expertise in manufacturing and marketing different dosage forms such as solid dosage

forms, injectables, metered dose inhalers, dry powder inhalers, transdermal patches,

suppositories and oncology formulations.

A dedicated field force of 3300 reaches out to super specialists, specialists, surgeons,

physicians and the rural markets.

The group has a strong presence in the cardiovascular, gastrointestinal, women’s healthcare

segments, respiratory, pain management, CNS, anti-infectives, oncology, neurosciences,

dermatology and nephrology segments.

Leading the way through new product introductions, the group was the first to launch

Nucoxia (Etoricoxib), Nupatch (Diclofenac Patch), Pantodac (Pantoprazole), Mifegest

(Mifepristone), Penegra (Sildenafil Citrate), Providac Techsules, Betaferon, Fludara, Slimona

(Rimonabant) and Novolizer in India.

The group has several brands that feature amongst the top 300 pharmaceutical brandin India.

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The group has a globally compliant manufacturing infrastructure comprising eight state-of-

the-art facilities which support product launches not just in India but also in the regulated

markets of U.S., Europe and Latin America.

Three of the group’s facilities including the formulation manufacturing plant at Moraiya, and

API plants at Ankleshwar and Dabhasa near Vadodara are approved by the USFDA. More

than 900 professionals spearhead the group’s research programme.

Over 350 scientists are working on new molecular entity research at the Zydus Research

Centre. The group has eight INDs in various stages of clinical trials.

Zydus Cadila is a partner of choice for several global pharma majors such as Boehringer

Ingelheim, Bayer Schering Pharma, Madaus AG, Nycomed, Hospira, Bio Sidus of Argentina,

Mallinckrodt of USA, Abbott to name a few.

One of the most reputed pharma companies globally, Zydus Cadila aims to be a leading

global healthcare provider with a robust product pipeline and sales of over $1 billion by 2010.

It plans to achieve sales of over $3 billion by 2015 and be a global research-driven company

by 2020.

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