The US administration’s 90-day pause order applies to new and existing funding.
“PEPFAR is not a big component of our business. Cumulatively, I think the PEPFAR products sold by Cipla is probably even sub $5 million of total sales,” said Umang Vohra, managing director and global chief executive officer of Cipla.
“There’s not much margin in that sale in any case,” he added.
According to the US-based Center for Infectious Disease Research and Policy, each year the US State Department distributes $6.5 billion through PEPFAR to fight HIV in 50 countries around the world. PEPFAR pulls together multiple public health agencies and programmes, and has been credited with saving upwards of 26 million lives since its launch in 2003 by then-President George W Bush.
Cipla has been helping extend the reach of affordable life-saving HIV/AIDS medications since 2001. The company supplies antiretroviral (ARV) medicines to 64 countries by mostly participating in the tenders floated by the governments and global institutions. However, over the years, Cipla has reduced its dependence on tenders from 18% in FY17 to low single-digit in FY24 due to competition and low margins.Vohra said it is too early to predict the Trump administration’s import tariff policy.”We invested close to about $100 million in just setting up two inhaler plants in the US. We already have a very strong, large capacity, oral solid dosage plant in the US, so I think we have fairly de-risked and diversified our business model over the last three years,” Vohra said. Cipla on Tuesday reported a consolidated net profit of ₹1,571 crore for the December quarter.
