Case 1: Cipla

Cipla is one of the biggest manufacturers of bulk drugs and formulations. The company has introduced several formulations and active pharmaceutical ingredients (APls). It commissioned the second phase of its manufacturing operations in Goa and has entered into a research alliance for biopharmaceutical products with a Bangalore-based biotech company.

Cipla exports a wide range of APls and formulations to over 150 countries. Cipla has entered into new

arrangements with leading US generic companies for the supply of a wide range of finished dosage formulations. They have obtained approvals from USFDA, MHRA of UK, PIC of Germany and WHO,for most of

their drugs. Its overall profitability was due to the optimisation of resources and implementation of rigorous cost

control measures.

Cipla focuses on technological excellence and innovation to improve its performance both in domestic and international markets. The company has already accepted the growing importance of strategic alliances for research, manufacture and marketing, in the changing business environment.

Question

Discuss the rationale for Cipla's focus on exports and strategic alliances?