Cipla (CIPLA IN) Hold: Execution of US pipeline products key

Research evidence excerpt

Cipla (CIPLA IN) Hold: Execution of US pipeline products key

Equities ● Pharmaceuticals

14 May 2026

Highlights from 4QFY26 earnings call

◆ The One India business (46% of 4Q revenue) delivered a c15% y-o-y growth in 4Q, driven

by healthy performance across branded prescriptions (BGx), trade generics (Gx), and

consumer health (CH) verticals.

◆ Helped by new launches, increasing revenue share from chronic therapies, etc, Cipla aims

to outpace India Pharma market (IPM) growth over the next 1-2 years.

◆ In the US, it plans to launch four respiratory assets including gVentolin HFA, gAdvair, and

gSymbicort.

◆ For lanreotide, remediation efforts are underway at its partner site post which the facility will

undergo re-inspection by the FDA. Cipla expects to get better visibility on resolution timeline

by 2QFY27. Cipla also plans to file lanreotide from an alternative US-based manufacturing

site in early CY27 to diversify sourcing for the product.

◆ The company is building-up its US pipeline focusing on respiratory assets, peptides, 505(b)(2)

assets, oligonucleotides, etc to support its US sales growth. It plans to file ANDAs for 40-50

products over the next three years.

◆ Cipla currently has two biosimilars in its pipeline. It focuses on in-house development of

biosimilars as it doesn’t see many in-licensing opportunities. Overall, it aims to add 6-8

biosimilars over the next 5-8 years.

◆ The company expects R&D spend at 7% of revenue in FY27e.

1. Cipla: 4QFY26 results summary

Actual vs

(INRm) 4QFY26 4QFY26e HSBCe 4QFY25 % y-o-y 3QFY26 % q-o-q

Total Sales 64,643 63,100 2.4% 65,977 -2.0% 69,630 -7.2%

Other op. income 769 1,208 -36.3% 1,320 -41.7% 1,115 -31.0%

Total revenues 65,412 64,308 1.7% 67,297 -2.8% 70,745 -7.5%

Materials cost 22,487 23,449 -4.1% 21,890 2.7% 26,321 -14.6%