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Informist, Wednesday, May 13, 2026

 

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--Cipla: Delivered market-beating growth in Africa business in FY26
--CONTEXT: Cipla management's comments at post-earnings virtual press meet
--Cipla: Advancing our opportunities in biosimilars
--Cipla: Committed on R&D spends going forward, particularly in emerging mkts
--Cipla: Expecting double-digit growth in India business for FY27
--Cipla: Strong sequence of launches for US market in pipeline
--Cipla: Little impact on Q4 margin from effect of West Asia war on shipping
--Cipla: Longer West Asia war continues, more the likely impact on margins
--Cipla: See margins improving QoQ in FY27 on back of strong pipeline
--Cipla: Raw material inflation will rise if West Asia situation prolonged
--Cipla: Will be crossing $1 billion run rate in US market by end of FY27
--Cipla: Will be adding at least one biosimilar for the next 5-6 years
--Cipla: Supply of input materials not disrupted so far amid West Asia war
--Cipla: Prices of input materials gone up because of West Asia war
 

 

By Rajesh Gajra and Gunjan Rajput

 

MUMBAI/NEW DELHI – Supply of raw materials, including solvents and fuels, has not been disrupted so far by the war in West Asia, but prices of these materials have gone up, the management of Cipla Ltd. said at a post-earnings virtual press meet Wednesday. Based on cost inflation so far, management estimates a 1-2% margin impact on the company if the war is prolonged.

 

The war has had little impact on business and margins in the March quarter, Global Chief Operating Officer and Managing Director Achin Gupta said. The raw materials cost inflation will worsen if the situation in West Asia gets prolonged, he said.

 

If the war gets prolonged, Cipla will work together with various stakeholders and the government to secure supplies of essential materials and ensure "continuity of the supply of medicines," Gupta said. The company has also begun supplying some of its complex products from its new US sites, he said. "So, we will diversify the sources to overcome some of these challenges and create more supply security," Gupta said.

 

A significant fall in Cipla's sales from the North America business was a key reason behind the 3?cline in its consolidated revenue to INR 65.41 billion in the March quarter. Going forward, Cipla expects to commercialise in 2026-27 (Apr-Mar) four of five respiratory products already filed in the US market, the company said in its earnings investor presentation.

 

"We have a very strong sequence of launches for the US... (including) one big peptide product launch," Gupta said. This is expected to translate into sequential margin improvement in FY27, according to management.

 

Cipla expects its run rate for the US market to reach $1 billion by the end of FY27, according to Gupta. "The full year number (for FY27) might be less, but the run rate (for the US market) will start touching $1 billion by the end of FY27," he said.

 

On its domestic business, Cipla expects double-digit, market-beating growth in FY27 and beyond, according to Gupta. The company sees strong momentum continuing across all three verticals of its India business – prescription, trade generics, and consumer health – he said.

 

In FY26, Cipla had a market-beating growth in its African business, particularly in the private segment, the management said. The business in the region is currently traversing a scaling-up journey and is seeing continuing progress on that front, the company said in its investor presentation.

 

Looking ahead, Cipla "is committed to investing in R&D (research and development), especially for the developed markets, with a very strong pipeline across respiratory, peptides, and complex generics," Gupta said. The company is also advancing opportunities in biosimilars and other complex modalities, where it sees a significant long-term opportunity, he said. "We would be adding 1-2 biosimilars each year for the next five to six years," Gupta said.

 

Cipla posted a consolidated net profit of INR 5.55 billion in the March quarter, down 55% on year. On Wednesday, shares of Cipla closed 2.7% higher at INR 1,327.60 on the National Stock Exchange. The company announced the March quarter results during market hours.  End

 

Edited by Saji George Titus

 

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