Cadila Healthcare

Cadila Healthcare is an Indian pharmaceutical company headquartered at Ahmedabad in Gujarat state of western India. The company is the fifth largest pharmaceutical company in India, with US$290m in turnover in 2004. It is a significant manufacturer of generic drugs.

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History

Cadila Laboratories was founded in 1952 by Shri Ramanbhai Patel (1925-2001), formerly a lecturer in the L.M. College of Pharmacy, and his business partner Shri Indravadan Modi. The company evolved over the next four decades into one of India's established pharmaceutical companies.

In 1995 the Patel and Modi families split, with the Modi family's share being moved into a new company called Cadila Pharmaceuticals Ltd. and Cadila Healthcare became the Patel family's holding company. Cadila Healthcare did its IPO on the Bombay Stock Exchange in 2000. Its stock code on the Bombay exchange is 532321.

In 2001 the company acquired another Indian pharmaceutical company called German Remedies. On June 25, 2007, the company signed an agreement to acquire 100 per cent stake in Brazils Quimica e Farmaceutica Nikkho do Brasil Ltda (Nikkho) for around 26 million dollars.

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 food

Active pharmaceutical ingredient plants

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 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.

Formulation plants

The company operates formulation plants at six locations:

Moraiya plant - Zydus Cadila's formulation plant at Moraiya in Sanand taluka on the outskirts of Ahmedabad is the largest formulation plant in India. It plant became Food and Drug Administration (FDA)-approved in 2004/2005. The plant makes tablets, capsules, and soft gel capsules as well as injectable drugs in both sterile liquid and lyophilized form. Zydus Cadila also runs a large R&D operation at Moraiya;

Vatwa plant - Zydus Cadila's plant at Vatwa, an industrial suburb of Ahmedabad, makes nutraceuticals. The plant was acquired with German Remedies;

Changador plant - Zydus Cadila's plant at Changodar, 20 kilometres from Ahmedabad on the city's outskirts, manufactures fine chemicals. Zydus is current constructing a facility at Changodar to make vaccines for hepatitis B and rabies.

Navi Mumbai plant - This operation, at Navi Mumbai in Maharashtra, is a 50/50 joint venture with Germany's Altana Pharma AG, makes intermediates of the drug pantoprazole.

Goa plants - The company's plants at Ponda in the southern Indian state of Goa do formulation work as well as manufacture oncology drugs and a herbal laxative branded Agiolax based on Psyllium seeds.

Baddi plant - In 2004 Zydus commissioned at formulation plant at Baddi, in Himachal Pradesh state of northern India. The Baddi plant makes solid oral pharmaceuticals.

Corporate control

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 26th 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.

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