CIpla cuts FY26 EBITDA margin view; Lanreotide supply woes to continue in Q4
This story was originally published at 18:44 IST on 23 January 2026
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--Cipla: Working with Pharmathen to resolve US FDA issues
--CONTEXT: Comments by Cipla's management at post-earnings press meet
--Cipla: Exploring alternative site with Pharmathen in US for Lanreotide
--CONTEXT: Plant of Cipla's partner Pharmathen under US FDA scrutiny
--Cipla: In talks with multiple partners for CAR-T cell therapy pdts
--Cipla: Initial response to Yurpeak is good
--Cipla: Want to focus on Yurpeak brand in GLP-1 category for now
--Cipla: May enter semaglutide generic space later
--CONTEXT: Cipla partnered with Eli Lilly for Mounjaro under Yurpeak brand
--Cipla: Yurpeak sales growth potential is immense in India
--Cipla: Lanreotide supply issues also impacted Q3 margins, PAT
--Cipla: Expect Lanreotide supply issues to have more visible impact in Q4
--Cipla: EBITDA margin guidance for FY26 cut to 21% from 22.75%
--Cipla: Cut in FY26 EBITDA margin guidance due to Lanreotide supply issue
By Eshitva Prakash and Narayana Krishna
MUMBAI – Cipla Ltd. lowered its 2025-26 (Apr-Mar) earnings before interest, tax, depreciation, and amortisation margin guidance to 21.00% from 22.75% earlier, as it expects the Lanreotide drug's supply issue to persist in the coming quarter. The company is exploring multiple options, including alternative production sites, to reduce supply risk for the hormone and tumour drug, its designated Managing Director and Chief Executive Officer Achin Gupta said at a post-earnings press conference.
For the quarter ended December, Cipla reported an EBITDA margin of 17.7%, down from 28.1% in the year ago quarter.
Cipla said that supply issues with the Lanreotide drug also hit its net profit in the December quarter, along with weak US sales performance. The company has said it is looking for alternative sites in the US to develop the drug with its partner. "Now, there is some impact of Lanreotide in the December quarter, but that impact will also be more visible in the March quarter for us," Gupta, who is the current global chief operating officer, said. Gupta will take over as the managing director and global chief executive officer on Apr. 1.
Cipla's Greece-based contract development and manufacturing organisation partner, Pharmathen International, paused production of Lanreotide injection and is engaged in remediation at its plant in Rodopi, Greece, following a Form 483 issued by the US Food and Drug Administration with nine observations. Cipla expects Lanreotide supply to resume in the first half of FY27.
The pharmaceutical major has two plans to tackle Lanreotide's supply problem. First, Cipla aims to bring back the supply of already produced drugs from its partner, and second, it is looking at alternative sites to manufacture the drug, in order to resume production quickly, according to the company's management.
Cipla is currently focussing on the tirzepatide drug under the glucagon-like peptide-1 category, even as several major pharmaceutical players move to acquire manufacturing rights for semaglutide production ahead of the weight-loss drug going off-patent. However, Cipla is open to entering the market with semgalutide-linked products in the future, depending on "how the semaglutide-market shapes up, especially at lower price points," Gupta said. The company's management said that it expects a substantial revenue contribution from its tirzepatide drug of brand Yurpeak. However, margin contribution is likely to be limited, since its production and marketing are largely dependent on in-licensing deals, the management said. Cipla is in partnership with Eli Lilly for the Mounjaro drug, under Yurpeak.
The company said it is in talks with multiple partners to market chimeric antigen receptor T-cell therapy product, which is used to treat some types of blood cancer. "We've partnered with ImmunoACT for the first product...and we are in touch with multiple players for newer technologies (for the drug) as well," Gupta said.
Going forward, the company expects to be a market leader in India in cardiometabolic obesity, similar to its leadership in the respiratory segment. Gupta also said that Cipla is looking to establish global leadership in the respiratory segment. The company also aims to boost its inorganic growth. "We've got significant cash reserves which we can deploy towards our strategic goals and that will help us gain deeper presence in differentiated speciality businesses in different markets," Cipla's management said.
For the quarter ended December, Cipla reported a consolidated net profit of INR 6.76 billion, down 57% on year. The company's revenue for the quarter was largely unchanged on-year to INR 70.7 billion. On Friday, shares of Cipla ended over 4% lower at INR 1,315 on the National Stock Exchange. End
Edited by Saji George Titus and Akul Nishant Akhoury
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