Cipla shares see profit booking after Eli Lilly deal to market weight-loss drug in India

Shares of Cipla Ltd. are trading over 3% lower on Friday, October 24, after the drugmaker signed an agreement with US pharma major Eli Lilly to sell Lilly's blockbuster weight-loss drug under a new brand in India.

Under the deal, Lilly will manufacture the drug, while Mumbai-headquartered Cipla will market it under the brand name Yurpeak, the companies said on Thursday.

Yurpeak will be available as a once-weekly pre-filled injector pen, similar to Lilly's Mounjaro Kwikpen, allowing healthcare providers to personalise treatment plans for patients.

The drug will come in six dose strengths, 2.5 mg, 5 mg, 7.5 mg, 10 mg, 12.5 mg, and 15 mg, and will be priced the same as Mounjaro.

Lilly launched Mounjaro in India in late March for diabetes and obesity in 2.5 mg and 5 mg vials, and received approval for the Kwikpen device in June. Sales more than doubled within months of its launch.

Tirzepatide, the active ingredient, belongs to the GLP-1 receptor agonist class, which helps control blood sugar and slows digestion, making patients feel fuller for longer.

What's in it for Cipla?

Analysts estimate the Indian GLP-1 market could exceed $1 billion over the next four years, potentially adding 3% to Cipla's domestic revenue and 1.5% to EBITDA within three years.

Major players are expected to launch semaglutide in India after patent expiry in early FY27.

Nuvama Institutional Equities said the GLP-1 segment is highly lucrative, citing strong uptake of Rybelsus and Mounjaro (over ₹1 billion in sales per month in the past two months).

The brokerage believes Cipla, with its strong field force and distribution network, could clock FY26/FY27 sales of ₹360-370 crore while gaining a lead in the semaglutide opportunity.

Nuvama has raised its FY27 EPS estimate by 3% and retained a 'Hold' rating, revising the target price higher to ₹1,725 from ₹1,651 earlier.

Cipla is set to announce its September quarter earnings on October 30, 2025.