Cipla Share Price: Shares of Mumbai-headquartered pharmaceutical major Cipla fell over 4 per cent on Friday after brokerage firm Nuvama turned cautious
on the stock, citing weakening near-term earnings visibility. The downgrade follows a temporary production halt at European contract manufacturer Pharmathen, which is expected to impact supplies of Cipla’s key product, Lanreotide. Cipla is part of the BSE 100 index and commands a market capitalisation of Rs 1,13,487.90 crore.
Nuvama downgrades Cipla to ‘Reduce’
Nuvama has downgraded Cipla to ‘Reduce’ and cut its target price to Rs 1,360 from Rs 1,715. The brokerage cited weak near-term earnings visibility due to a temporary production pause at Pharmathen, Cipla’s exclusive supplier for Lanreotide.According to Nuvama, Cipla’s management expects Lanreotide re-supply only in the first half of FY27, with volumes likely to remain constrained. The brokerage cautioned that lower output and margin erosion may persist even after production resumes.
The brokerage highlighted Cipla’s continued dependence on Pharmathen as its sole supplier, exposing the company to supply-chain vulnerabilities.
In addition, competitive pressures are intensifying following the approval of Lannett’s generic Advair (gAdvair) and the expiry of gRevlimid exclusivity, further weighing on earnings prospects.
Nuvama also expects Cipla’s margin profile to revert to pre-gRevlimid levels, impacted by the Lanreotide disruption, heightened competition, and higher licensing intensity in the Indian market.
Cipla confirms production disruption
Cipla confirmed that the supply of its key US product, Lanreotide Injection, will remain constrained after the USFDA issued nine Form 483 observations to Pharmathen following an inspection of its Greece facility.The company added that production has been temporarily halted to implement remediation measures, with re-supply expected to resume in the first half of FY2026-27.
Cipla share price movement
As of 11:20 am, Cipla shares were trading 2 per cent lower, down Rs 30.65 at Rs 1,403.95. The stock hit an intraday low of Rs 1,367.80, marking a 4.7 per cent decline from the previous session’s close of Rs 1,434.60.Cipla Performace
Cipla’s recent performance shows sustained short‑term weakness but strong long‑term resilience. The stock declined 3.97 per cent over one week and 6.82 per cent over two weeks, while year‑to‑date losses stand at 6.15 per cent. It also fell 6.14 per cent in one month, 10.25 per cent in three months, 4.46 per cent in six months, and 2.47 per cent over one year. However, Cipla gained 8.18 per cent in two years, 32.82 per cent in three years, 70.96 per cent in five years, and 131.79 per cent over ten years.(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
