Here's Why Cipla Shares Are Down Today

Shares of Cipla Ltd. are facing immense pressure in trade on Friday after Morgan Stanley delivered a rather pessimistic note on the Indian pharmaceutical giant, with the brokerage firm expecting a weak Q4FY26 on account of recent disruptions.

The stock is trading at Rs 1,387, accounting for cuts of over 3%. This compares to Wednesday's closing price of Rs 1,434. Over a 12-month period, the stock has fallen 3%. 

The pressure in Cipla stocks on Friday comes on the back of Morgan Stanley expecting the pharmaceutical giant to report weak fourth quarter earnings for the financial year ending March 2026. The brokerage firm has also cut the target price for the counter, citing the recent Lanreotide supply disruptions.

Keeping that in mind, Morgan Stanley has maintained an 'underweight' rating on Cipla, while cutting the target price from Rs 1,396 to Rs 1,292. The brokerage firm has also trimmed earnings estimates by 2% for FY26 and 1% for FY27.

Cipla on Wednesday confirmed through an exchange filing that the firm's Lanreotide partner in Greece, Pharmathen, received a Form 483 notice at its Radopi unit.

Impact of the Form 483 on Pharmathen may have a serious impact on Cipla, as Lanreotide is the company's biggest US drug, with the company having a 22% market share. If Pharmathen faces problems, Cipla's Lanreotide sales could be affected. Manufacturing issues could affect Cipla's Lanreotide revenue.

In its latest note, Morgan Stanley has stated that Lanreotide supply disruption will be another key headwind for Cipla, which has already witnessed Revlimid phase-out. These two factors could culminate in Cipla posting a weak Q4FY26, according to Mrogan Stanley. As a result, the firm has cut the target price on the counter. 

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