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Informist, Wednesday, May 13, 2026

 

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--Cipla: Continue to prioritise organic investments in the US market 
--CONTEXT: Comments by Cipla's management in post-earnings analyst call 
--Cipla: See biosimilar as a $200-billion opportunity 
--Cipla: Aim to become leading AI pharma company 
--Cipla:Seeing some impact of ongoing geopolitical tension on operating costs 
--Cipla: No shelf stock adjustment for Revlimid in Q4 
--Cipla: AI to be implemented primarily for R&D purposes 
--Cipla: See 7% of revenue being spent on R&D purposes in FY27 
--Cipla: Expect revenue of INR 100 million  from some new launches 

By Gunjan Rajput and Avishek Rakshit

 

KOLKATA/NEW DELHI – Cipla Ltd. expects earnings before interest, tax, depreciation and amortisation margin to keep improving every quarter in the financial year 2026-27 (Apr-Mar), with stronger profitability likely in the second half of the year, driven by key US launches, the company's management said in a post-earnings conference call with analysts. The company guided for its FY27 EBITDA margin to be 18.5-20% compared to the margin of 21% in FY26.

 

"H2 will have better than average margins while the first two quarters will be lower as benefits from new launches are yet to come," the management said during the call. Its productivity initiatives and operating leverage from upcoming US launches would support margin expansion going forward. The management added that sustaining an EBITDA margin above 20% remained a target for the company. 

It said spending on research and development would remain close to 7% of sales in FY27 as it scales complex generics, respiratory assets, peptides, oligonucleotides, and biosimilars pipeline. The management flagged some near-term risks from geopolitical disruptions and sourcing-related cost inflation, though it said the impact was not significant right now and might be temporary. "We have started to see some impact of ongoing geopolitical situations within the operating expenses, which we are closely monitoring. In the near quarters, we don't see much meaningful impact, but in the future quarters, you'll see that impact coming," the management said.

 

Cipla expects to achieve a revenue run rate of $1 billion for the US market by the end of FY27. Its revenue from North America was $780 billion in FY26. The company continues to prioritise organic investments in the US market, while scaling its pipeline in respiratory, peptides and complex generics. A few products could contribute over $100 million each in annualised revenue, the management said. 

 

On Lanreotide, the company said remediation efforts at the partner facility are ongoing, while Cipla is also working on an alternative US-based manufacturing site. The company expects better visibility on remediation timelines over the next quarter and sees the opportunity returning by FY28. Cipla had to pause production of Lanreotide injection in January after its supplier Pharmathen International S.A faced scrutiny from the US regulator.

 

The company sees biosimilars as a nearly $200-billion opportunity globally. "We see biosimilars as a very large and under-penetrated opportunity......we are going to enhance our efforts on biosimilars," the management said. 

  

Cipla said it was confident of delivering double-digit growth for the India business in FY27, which will be aided by chronic therapies, differentiated launches, and a likely normalisation in seasonal demand. It said it aims to become a leading artificial intelligence-led pharmaceutical company, with artificial intelligence being implemented across functions, particularly in research and development, quality and regulatory operations, to improve productivity and decision-making. Separately, the company clarified that it did not book any shelf stock adjustment related to Revlimid during the March quarter.

 

The drugmaker posted a consolidated net profit of INR 5.55 billion during the March quarter on revenues of INR 59.82 billion. On Wednesday, shares of the company ended at INR 1,327.60 on the National Stock Exchange, up 2.7%.  End

 

Edited by Avishek Dutta

 

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