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What is the story about?
Shares of Cipla Ltd. gained in early trade on Tuesday, September 31, after the company signed a licensing agreement with Chinese pharma company Sino Biopharma's arm for a cancer drug.
Sino Bipharma's Chinese subsidiary Chia Tai Tianqing Pharmaceutical (CTTQ) haslicensed the cancer drug TQB2102 to Cipla, giving the latter exclusive rights to the drug, which cover India, South Africa and five emerging markets.
CTTQ will continue to manufacture and supply the drug, while Cipla will handle the clinical development and regulatory approvals. It will also lead the commercialisation in licensed markets.
TQB2102 is a HER2-targeted antibody-drug conjugate. It is being tested cross HER2-expressing cancers and shows encouraging potential in HER2-low advanced breast cancer.
In July, Cipla's reported its first quarter earnings, which missed analyst estimates across parameters, including US sales.
Its net profit fell 39% to ₹789 crore from the previous year and was lower than the CNBC-TV18 poll of ₹923 crore. Its profitability was lower even though tax expenses declined to ₹295 crore from ₹478 crore.
Its revenue of ₹7,119 crore was 2% higher than the previous fiscal but was below Street estimates of ₹7,342 crore.
Its earnings before interest tax depreciation and amortization (EBITDA) of ₹1,192 crore was 33% lower the previous year and than the CNBC-TV18 poll of ₹1,376 crore. Its EBITDA margin contracted to 16.7% from 25.6% in the year-ago period and from the poll of 18.7%.
Cipla's US market sales for the June quarter were at $162 million, below estimates of $173 million. As much as 22% of the firm's topline for the first quarter came from North America.
Cipla shares were trading 0.8% up in early trade on Tuesday at at ₹1,420.9 apiece. The stock has declined 3.6% in the past month and is down 5.3% this year, so far.
Also Read: Five factors why Kotak remains bearish on this Tata Motors unit
Sino Bipharma's Chinese subsidiary Chia Tai Tianqing Pharmaceutical (CTTQ) haslicensed the cancer drug TQB2102 to Cipla, giving the latter exclusive rights to the drug, which cover India, South Africa and five emerging markets.
CTTQ will continue to manufacture and supply the drug, while Cipla will handle the clinical development and regulatory approvals. It will also lead the commercialisation in licensed markets.
TQB2102 is a HER2-targeted antibody-drug conjugate. It is being tested cross HER2-expressing cancers and shows encouraging potential in HER2-low advanced breast cancer.
In July, Cipla's reported its first quarter earnings, which missed analyst estimates across parameters, including US sales.
Its net profit fell 39% to ₹789 crore from the previous year and was lower than the CNBC-TV18 poll of ₹923 crore. Its profitability was lower even though tax expenses declined to ₹295 crore from ₹478 crore.
Its revenue of ₹7,119 crore was 2% higher than the previous fiscal but was below Street estimates of ₹7,342 crore.
Its earnings before interest tax depreciation and amortization (EBITDA) of ₹1,192 crore was 33% lower the previous year and than the CNBC-TV18 poll of ₹1,376 crore. Its EBITDA margin contracted to 16.7% from 25.6% in the year-ago period and from the poll of 18.7%.
Cipla's US market sales for the June quarter were at $162 million, below estimates of $173 million. As much as 22% of the firm's topline for the first quarter came from North America.
Cipla shares were trading 0.8% up in early trade on Tuesday at at ₹1,420.9 apiece. The stock has declined 3.6% in the past month and is down 5.3% this year, so far.
Also Read: Five factors why Kotak remains bearish on this Tata Motors unit
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