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Informist, Friday, Jan. 23, 2026

 

--Cipla: Rise in R&D spend in Q3 due to procurement of new equipment

--CONTEXT: Cipla management's comments at post-earnings analyst call

--Cipla: Need to revise FY27 US sales guidance on Lanreotide supply issue

--Cipla: Need to revise FY27 US revenue guidance of $1 bln

 

By Narayana Krishna and P. Madhu Kumar

 

MUMBAI – The management of Cipla Ltd. Friday said there is a need to revise its earlier target of achieving $1 billion of sales in the US market in 2026-27 (Apr-Mar), as the company is facing supply challenges for one of its key products--Lanreotide. "The guidance will have to be revised because if we don't have Lanreotide in one quarter, the numbers will be lower. So, I think that guidance will have to go down because of Lanreotide (supply issues)," Umang Vohra, the outgoing managing director and chief executive officer of the company, said.

 

For FY25, Cipla had reported a revenue of $934 million from its operations in the US. The company's total revenue from US operations for the Apr-Dec period of this financial year was $626 million. In the December quarter, the company's US sales fell 26% on year in dollar terms to $167 million, mainly on account of a fall in generic cancer drug Revlimid and some impact of Lanreotide supply challenges, the management said in a post-earnings conference call.

 

Cipla Friday reported a consolidated net profit of INR 6.76 billion for the December quarter, down 57% on year. The company's revenue for the quarter was largely unchanged on year at INR 70.7 billion. Cipla said the December quarter earnings were also impacted to some extent as supplies of Lanreotide were hit for a few weeks.

 

Cipla's Greece-based contract development and manufacturing organisation partner, Pharmathen International, paused production of Lanreotide injection following a Form 483 issued by the US Food and Drug Administration with nine observations. The company said Pharmathen is engaged in remediation at its plant in Rodopi. Cipla expects the supply of Lanreotide to resume in the first half of FY27. The drug is used to treat hormone-related issues in patients with cancer tumours and has annual sales of around $900 million in the US.

 

The management, however, said the pipeline of launches that is being announced is likely to help the company to maintain the US business in $1 billion trajectory going forward. Since the company is at an advanced stage to launch three products, revenues may be around that directional guidance, the management said.

 

Earlier in the day, the management said the company is exploring multiple options, including alternative production sites, to reduce supply risk for Lanreotide.

 

The management said the company is working on launching four respiratory products in the US in FY27, of which two products will be launched in the next six months, which are quite large in market size and expected to contribute a significant chunk to the US revenue.

 

Cipla said the expenditure on research and development in the December quarter was relatively high as the company procured some equipment during the quarter. The company's R&D spend for the quarter was up 37.4% on year at INR 4.94 billion. It was 7% of the total sales for the period.

 

On Friday, shares of the company closed at INR 1,315 on the National Stock Exchange, down 4% from the previous close.  End

 

US$1 = INR 91.95

 

Edited by Ashish Shirke

 

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