The shares of this renowned pharmaceutical stock, engaged in the business of developing medication to treat various conditions, came into focus on Friday after receiving the final approval from USFDA for its New Drug, Nilotinib used to treat philadelphia chromosome positive chronic myeloid leukemia (CML).
Stock Performance
With a market capitalization of Rs 1,19,163.45 crore, Cipla Ltd jumped 1.5 percent in Friday’s trading session and made a high of Rs 1,501.05 per share compared to its previous closing price of Rs 1,479.80 per share. The stock retraced from its day’s high and was trading at Rs 1,475.50 which is 0.2 percent lower than the previous closing price.
What Happened
Cipla Ltd has received final approval from the United States Food and Drug Administration (USFDA) for its New Drug Application submitted for ‘Nilotinib Capsules 50, 150 and 200 mg’ on 19th February 2025.
Nilotinib is an oral oncology capsule used to treat Philadelphia chromosome-positive chronic myeloid leukemia (CML). Further, this product is expected to launch in the United States during FY 2025-26.
Company Overview
Cipla Ltd, is the largest pharmaceutical company in India by volume and also the largest by Rx (prescription) in South Africa. The company is engaged in the business of developing medication to treat various conditions like arthritis, diabetes, and depression, respiratory and cardiovascular disease.
With a presence in over 85 markets, and more than 50 dosage forms, the company has a global revenue of $3 billion. The company has 46 state of the art manufacturing facilities and four business units: One India, North America, One Africa and Emerging Markets and Europe.
Financial Performance
In the latest quarter, Cipla Ltd reported a 7 percent YoY increase in its total revenue from Rs 6,604 crore to Rs 7,073 crore. On a quarterly basis, there was a slight increase from Rs 7,051 crore in Q2 FY25.
This was accompanied by an impressive 47 percent YoY increase from Rs 1,068 crore to Rs 1,575 crore. On a quarterly basis, the company saw a 21 percent increase in net profits from Rs 1,305 crore in Q2 FY25.
Industry Outlook
India’s pharmaceutical industry ranks third globally by production volume and 14th by value, with around 3,000 drug companies and 10,000 manufacturing units. Valued at $58 billion, the sector is projected to reach $120-130 billion by 2030 and $400-450 billion by 2047. This growth would be driven by rising lifestyle diseases, an aging population, and increased healthcare consumerization.
Written by Shwetha Sairam
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