Shares of pharmaceutical major Cipla dropped over 4 per cent on Wednesday at ₹1,417 per share after analysts highlighted near-term challenges following a muted performance in the second quarter results for the current financial year (Q2FY25).
In Q2FY25, Cipla's domestic business underperformed due to seasonal weakness in the anti-infective and trade generics business. However, this was offset by strong growth in Africa, emerging markets, and European business, said analysts. Growth for Cipla was lower in the US and India than analyst estimates.
"The narrative for Cipla has worsened in the recent past, driven by US prospects and a slowdown in India. Supply constraints in Acromegaly drug Lanreotide, potential competition for the drug in due course, a delay in clearance of the Goa site resulting in Cipla failing to have the first-mover advantage (a competitor has gained approval) present potential risks to earnings," analysts at Nomura said in a report.
This story is from the October 31, 2024 edition of Business Standard.
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This story is from the October 31, 2024 edition of Business Standard.
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