Cipla Ltd. expects new launches to support its margin improvement from fiscal 2028 onwards, as it expects sequential profit growth to continue for two more quarters according to its earnings conference call on Tuesday. The company sees better earnings on new launches, ramp up in existing pdts (prescription digital therapeutics) in FY28.
The firm will be adopting a wait-and-watch approach to entering the semaglutide market. It will launch two more respiratory products in the US in fiscal 2027. The company will also launch a biosimilar to Keytruda, a prescription drug used to treat cancer in the financial year 2029, to capture the first wave advantage. The company will maintain an Ebitda (earnings before interest, taxes, depreciation and amortisation) margin guidance of 18.5-20% for the financial year 2027.
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Cipla Ltd.'s September-quarter earnings were weighed down by lower revenue from North America and its API and other businesses, partly offset by growth in India.
The pharmaceutical company reported a 35% year-on-year decline in profit to Rs 878 crore for the September quarter. The firm attributed these declines to the rising freight and input costs by 100-200 basis points in the second quarter. It retained a $334 million run rate of US sales for the second half of financial year 2027. The company's research and development spending was at 6-7% of total sales.
The firm aims to achieve $1 billion in revenue in North America in the financial year 2027. The company is focusing on growth in North America via new product launches. The firm plans to add at least two new biosimilar assets each year. The pharma company stated that the respiratory drug Ventolin to contribute to growth in the US in the coming quarters. The firm expects to launch Advair, an a prescription combination inhaler for asthma control in the US in the third quarter.
The company further stated that Yurpeak has become India's second-largest GLP-1 brand. Cipla further stated that it is looking for the second source of supply for Lanreotide, a drug that manages acromegaly in the US. It stated that it is working with Pharmathen to resolve issues with the US Food And Drugs Administration (FDA) for Lanreotide. It expects Africa sales to improve in coming quarters. The firm also got a favourable ruling in court on the Africa tender.
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