Cipla's unbranded drug business may take a hit in FY20, say analysts

Analysts see full recovery by Q3 as company revamps distribution network

Cipla, one of the major Indian drug companies in the trade generics (Gx) space, might see sales of unbranded drugs fall in 2019-20, say analysts. Cipla gets a fifth of its domestic revenue from the segment, one of the highest among Indian pharmaceutical firms.

Trade generics refers to unbranded medicine sales, as opposed to branded generic medicines. Drugs that are copycats of innovator drugs (after the latter’s patents have expired) are generics. Trade generics are pushed directly to the distributor, not marketed through a field force (or medical representatives).

“Cipla is one of the largest players in trade generics. Another