Latest news with #Lanreotide
Mint
12 hours ago
- Business
- Mint
Indian Pharma Q1FY26: Strong domestic sales to cushion weakness in US markets
India's pharmaceutical companies are expected to deliver steady earnings growth in the June quarter, buoyed by robust domestic demand despite pricing pressure in the US on key products like Revlimid, said analysts. Aggregate revenue for the sector is forecast to rise about 9% year-on-year in Q1FY26, with Ebitda and net profit expanding about 8% and 2–6%, respectively, according to estimates from brokerages Nuvama and BNP Paribas. However, Ebitda margins may contract by 30–50 basis points due to erosion in US pricing. 'We expect US sales to decline 1% q-q (quarter-on-quarter) and remain volatile as the gRevlimid LoE (loss of exclusivity) is expected in the next few quarters and companies may race to gain volume share," BNP Paribas healthcare analyst Tausif Shaikh said in a research note dated 22 July. Indian drugmakers like Dr Reddy's, Cipla, Sun Pharma, Zydus Lifesciences, Natco Pharma and Aurobindo Pharma have been distributing generic versions of blood cancer drug Revlimid in restricted quantities in the US since March 2022, and will lose exclusivity in January 2026. This will open the market to unrestricted generic sales. '...most companies are set to face challenges in FY26/FY27 once the benefits of gRevlimid subside and margins return to normalised levels. For 1QFY26, we expect domestic formulation revenue growth to remain strong, while US business performance to remain company specific," the note said. US sales hit by price erosion In the US, which accounts for 30–40% of revenue for several Indian drugmakers, sales are projected to stay flat or grow marginally in Q1FY26. Price erosion in key generics, especially gRevlimid, remains a major drag, prompting companies to front-load shipments before further adjustments in January 2026. US sales of Aurobindo Pharma, Dr Reddy's, Cipla and Zydus Lifesciences are expected to be hit by price erosion in Revlimid, according to Nuvama. The brokerage expects 1% year-on-year growth in US sales for companies in its coverage. However, Zydus may post 4% growth in the US due to the incremental contribution of Mybetriq (Mirabegron) that is used to treat an overactive bladder. Sun Pharma's US revenue may grow 5% quarter-on-quarter, led by specialty products and higher Revlimid sales, but margins could narrow due to higher R&D and launch costs, Emkay Global analysts noted in a 15 July report. Lupin's US business is expected to gain from the Jynarque (Tolvaptan), used to treat kidney function decline. While Dr. Reddy's growth may be offset by margin pressure, BNP forecasts Cipla's US sales to remain flat, constrained by competition in Revlimid and Lanreotide. Lanreotide is used to treat acromegaly, where the body produces too much growth hormone and gastroenteropancreatic neuroendocrine tumors. Dr Reddy's is the first in the pack to kickstart Q1FY26 earnings for the pharma sector on Wednesday. Strong domestic sales The Indian pharmaceutical market saw a late surge in June 2025, with growth during the quarter primarily driven by cardiac, respiratory, CNS, and anti-diabetic therapies, said Emkay Global analysts. Indian branded formulations are expected to grow by 9–10% YoY, led by therapies such as cardiac, respiratory, CNS and anti-diabetics. BNP Paribas highlighted a strong uptick in IPM growth in June (11.5% YoY), lifting overall Q1 growth to 8.6%. Companies like Sun Pharma, Dr. Reddy's, Lupin and Cipla are forecast to outperform the industry average in India, with double-digit domestic revenue growth. Sun Pharma is expected to post its eighth consecutive quarter of double-digit India growth, while Cipla's domestic momentum is aided by a low base and recovery in the trade generics segment. The Nifty Pharma has declined 4.38% so far in 2025 against a 6.22% gain in the benchmark Nifty index.
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Business Standard
17 hours ago
- Business
- Business Standard
Cipla Q1 preview: Net profit may jump up to 4%, revenue by 8% YoY
Cipla Q1FY26 results preview: India's leading pharmaceutical company, Cipla, is expected to report moderate year-on-year (Y-o-Y) growth in both profit and revenue. However, on a quarterly basis, while profit is likely to increase, revenue may see a slight decline. This is due to strong growth in One Africa and EU/Rest of the World regions, while partially offset by muted US sales due to pricing pressure and limited product approvals. The pharma major is scheduled to announce its April-June quarter earnings for the financial year 2025-26 (Q1FY26) on Friday, July 25, 2025. According to brokerages tracked by Business Standard, Cipla may see its average revenue increase by 5.6 per cent year-on-year (Y-o-Y) to ₹7,071 crore as against ₹6,694 crore in the June quarter of FY25. Similarly, on a quarter-on-quarter (Q-o-Q) basis, the topline may grow by 5 per cent compared to ₹6,730 crore in Q4FY25. The pharma major is expected to report an average profit after tax (PAT) of ₹1,208 crore for the June quarter, against ₹1,178 crore in Q1FY25, implying an increase of only 2.6 per cent Y-o-Y for Q1FY26. On a quarterly basis, profits could fall by a marginal 1.12 per cent. The company reported a profit after tax (PAT) of ₹1,222 crore in the March quarter of FY25. According to brokerage forecasts, the company's earnings before interest, tax, depreciation and amortisation (Ebitda) is likely to slightly decrease by 1.3 per cent to ₹1,693 crore in Q1FY25 compared to ₹1,716 crore in the year-ago period. However, on a sequential basis, Ebidta may increase 10 per cent from ₹1,538 crore in the March 2025 quarter. Check List of Q1 results today Here's what the brokerages expect from Cipla Q1FY26 results: Kotak Institutional Equities Despite a slightly modest season, analysts expect Cipla to report a 9 per cent Y-o-Y growth in domestic sales. However, US sales are likely to come in at $221 million, due to slightly higher Lanreotide sales, partially offset by a marginal Quarter-over-Quarter decline in inhaler sales. Kotak also expects strong growth of 16 per cent Y-o-Y in One Africa sales, with South Africa reporting a 15 per cent Y-o-Y growth during the quarter. "In addition, we expect 11 per cent Y-o-Y growth in European Union/Rest of the World sales. Overall, we expect Cipla's Q1FY26 sales to grow 5 per cent Y-o-Y and 5 per cent Q-o-Q," the brokerage said. Motilal Oswal Financial Services The brokerage expects Cipla's US sales to decline 13 per cent Y-o-Y to $219 million for the quarter under review, driven by reduced price of g-Revlimid and limited approvals in Q1FY25. In addition, dosage form (DF) sales are likely to witness moderate growth of 8 per cent Y-o-Y due to weakness in respiratory and anti-diabetes therapies. Analysts are awaiting progress on regulatory measures at the Indore site, an update on the launch of Nilotinib capsules, and the filing of differentiated products with developed markets. Choice Institutional Equities Analysts at Choice Institutional Equities forecast 7.8 per cent Y-o-Y revenue growth, on the back of strong traction in One Africa and moderate growth across other regions. The brokerage expects Ebitda to remain flat due to higher research & development (R&D) spends, with margins contracting 163 bps Y-o-Y. However, PAT is expected to grow 3.7 per cent Y-o-Y. Key monitorables to watch include the management commentary on new biosimilar launches and the anticipated Advair launch. About Cipla Cipla, one of the leading pharmaceutical companies in India, is engaged in the manufacturing, developing, and marketing of a wide range of branded and generic formulations and Active Pharmaceutical Ingredients (APIs). The company's product portfolio includes complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. Cipla has a presence in India, as well as South Africa, North America, and other key regulated and emerging markets. The company operates 47 manufacturing sites across the globe. It produces 50 dosage forms and over 1,500 products across a wide range of therapeutic categories.
Time of India
2 days ago
- Business
- Time of India
Drug companies set for improved revenue growth in June quarter amid US market challenges
ET Intelligence Group: Select companies in the pharma and healthcare sector are expected to show improved revenue and profit for the June 2025 quarter driven by a strong growth in the domestic market. Some companies may face pricing pressure in the US market due to sequentially lower Revlimid sales, used for the treatment of myeloma (a type of blood cancer). The performance for hospital chains may improve driven by a jump in operational beds. Sun Pharmaceutical Industries ' revenue may grow in mid-single digit year-on-year, driven by market share gains in existing products. While the domestic business is expected to show traction, the US sales may moderate due to heightened competition in gRevlimid. Explore courses from Top Institutes in Select a Course Category Operations Management Leadership Data Science Others Degree MCA Finance Data Analytics MBA others Public Policy healthcare Digital Marketing Cybersecurity CXO Healthcare Management Project Management Design Thinking Technology Product Management PGDM Data Science Artificial Intelligence Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details Dr Reddy's Laboratories domestic business is expected to grow on the back of rise in respiratory/derma segment. US revenue is highly dependent on the company's ability to book revenues through gRevlimid. Margin could decline slightly. Agencies Aurobindo Pharma 's revenue is expected to be modest on the back of decline in US sales. Penicillin-G plant's capacity utilisation improvement could drive the growth in future quarters. Margins are expected to be flattish. For Cipla , US sales are expected to decline due to a price fall for gRevlimid, slight sequential drop in inhaler sales, which may be partially offset by higher Lanreotide sales. Margins may decline by 80 basis points. Live Events Lupin 's revenue is expected to grow more than peers, driven by strong growth in the US business amid new launches and increased contribution from existing products. Margins are also expected to expand by around 800 basis points. Apollo Hospitals Enterprise may report double digit growth in revenue and profit amid stable occupancy and higher revenue per bed. In addition, Keimed, a pharma distribution company,which Apollo acquired in 2024 is likely to support the overall margin performance.
Mint
30-06-2025
- Business
- Mint
India's Pharma sector falters in H1 2025; index falls over 6% becoming the second worst-performing sector
India's pharmaceutical sector has come under significant pressure in 2025, with the Nifty Pharma index falling more than 6 percent during the first half of the year. In stark contrast, the broader Nifty 50 index gained nearly 8 percent over the same period. Investor sentiment has turned sharply bearish amid a series of domestic and global concerns ranging from export tariffs to macroeconomic uncertainty. The downturn has been broad-based. Natco Pharma suffered the steepest decline, plunging around 34 percent. IPCA Labs dropped over 20 percent, while Aurobindo Pharma, Lupin, Granules India, Mankind Pharma, Ajanta Pharma, and Alkem Labs lost between 12–20 percent. Even stalwarts such as Biocon, Cipla, Dr Reddy's, JB Chemicals, and Sun Pharma saw setbacks of 1–10 percent. Amid the decline, a few companies have stood out. Laurus Labs recorded a 19 percent gain, Abbott India rose 16 percent, Divi's Labs climbed 10 percent, and Glenmark Pharma increased by 8.6 percent. Torrent Pharma and Zydus Life also managed modest gains. The sector's weakening fortunes are linked to several concerns. Large-scale foreign institutional investor (FII) exits, particularly from export-sensitive industries, have weighed heavily on pharma stocks. Macro risks such as sluggish global growth, higher interest rates, and the ongoing US–China trade tensions have exacerbated the situation. Market anxiety escalated after former US President Trump's announcements—first in April and again in June—hinting at enforcing pharmaceutical tariffs of up to 25 percent. Such measures would severely impact Indian drugmakers, which export up to 40 percent of their generics and specialty medicines to the US. Nuvama Institutional Equities acknowledged investor caution surrounding large-cap pharma, particularly due to US policy threats and product-mix exposure. It noted, however, that interest remains strong in CDMOs and GLP‑1 drug manufacturers, while healthcare services appear poised for double-digit growth thanks to facility expansions. Tariff and product-mix concerns: Nuvama flagged persistent worries about a potential shift in US import policy, which could impose higher duties on Indian generics such as gRevlimid, gMyrbetriq, gSpiriva, gJynarque, and Lanreotide. The next two months are seen as pivotal for potential rule changes. It added that Cipla's strong pipeline—featuring products like gAbraxane and gSymbicort—and market-share gains in Lanreotide may calm investor fears. Sustained interest in CDMO and GLP‑1 space: Despite US export uncertainty, investors are positive about CDMOs. Firms like Aarti Pharmalabs have benefitted from production shifts from China. Jubilant Pharmova, Divi's, and Dr Reddy's continue to prosper, supported by growth in fill-finish services and GLP‑1 demand—what Nuvama described as 'near-term opportunities.' Optimism in healthcare services: Nuvama also sees promise in healthcare infrastructure. Companies like Laxmi Dental, Jupiter Lifeline, Suraksha, Aster DM, and Jeena Sikho are expanding inpatient capacity and operating efficiently. New centres and investments in diagnostics, digital tools, and hospital beds are expected to underpin robust revenue and margin growth. Nuvama's Top Picks & Emerging Themes Analyzing their coverage, Nuvama identified several names with strong potential: Aurobindo Pharma ('Buy', ₹ 1,460 TP): Valued at around 14× FY27E EPS, its Pen‑G facility restart and pipeline investments in biologics and peptides are likely to drive growth. Jubilant Pharmova ('Buy', ₹ 1,385 TP): Positioned to benefit from re‑shoring trends in US manufacturing and sustained demand for CDMO services. Lupin ('Buy', ₹ 2,570 TP): With key US launches including gSpiriva and gXarelto, its FY26 PAT growth projection of 19 percent underpins a strong outlook. Laxmi Dental ('Buy', ₹ 530 TP): Laxmi is gaining from underpenetrated oral health markets, digital dental tools, and export growth in aligners. Jupiter Lifeline ('Buy', ₹ 1,800 TP): On track to double bed capacity with greenfield expansions and ramp up revenue through capacity utilisation. Aarti Pharma: Benefiting from new CDMO projects and expanded intermediate capabilities. Eris Life: Positioned to leverage insulin and GLP‑1 demand, expected to reach PHY26 profitability inflection. OneSource Specialty: Peptide and biologics CDMO poised for early commercial launches. Shilpa Medicare: Focusing on niche and high-value products like 505b2 and ADCs. Aster DM: With bed expansions and merger synergies, set to become a top-tier hospital chain. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
The Hindu
13-05-2025
- Business
- The Hindu
Cipla beats quarterly profit view on strong demand
Cipla, India's third-biggest drugmaker by sales, reported a fourth-quarter profit that beat estimates on Tuesday (May 13, 2025), helped by strong demand for its drugs used to treat chronic conditions, especially respiratory illnesses. The company's consolidated net profit came in at ₹12.22 billion ($143.5 million) in the January-March period. Analysts, on average, expected ₹10.24 billion, per data compiled by LSEG. Total revenue increased 9.2% to ₹67.3 billion. Cipla's U.S. sales are usually driven by its tumour drug Lanreotide, its second-biggest revenue generator. However, the company had warned in October that certain supply chain issues related to the drug would last until the fourth quarter. India's drugmakers that derive significant revenue from North America through their cheaper version of innovator drugs have been on edge following U.S. President Donald Trump's tariff threat. The company, earlier this year, said that tariffs should not influence decisions at India's drug companies. Cipla's generic drug for cancer gets U.S. FDA nod The Trump administration, which initially spared the sector from any kind of duties, is likely to make an announcement on tariffs in the coming weeks. Last week, rival Dr. Reddy's beat fourth-quarter profit estimates, driven by new drug launches.
