Cipla expects US sales ramp-up in FY27, maintains full year guidance

Cipla, which announced its financial results for the June quarter on Thursday, saw its profits fall by 39% due to slowing sales in the US. However, the company’s CEO Achin Gupta said that the company expects sequential sales momentum in the US in the coming quarters, driven by new launches.

“Our pipeline this year is very promising. It includes several key launches that we are looking forward to in terms of approvals and launches, particularly three respiratory assets and one key peptide opportunity,” Gupta told reporters at the post-results press conference.

Cipla’s net profit fell 39% YoY in the quarter ₹789 crore due to unavailability of two important products, lenalidomide and lanreotide, compared to the previous year. “This time there is a decline, and new products are still catching up,” he said, adding that the drugmaker has seen consecutive improvements.

Revenue in the quarter increased marginally by 2% ₹7,119 crore while EBITDA decreased by 33% ₹1,192 crore and margins fell from 25.6% to 16.7%.

The company’s India business recorded its highest revenue with 12% annual growth. ₹3,452 crore. Domestic business accounted for nearly half of total revenue. “In our branded prescription business, we continue to see strong momentum across our chronic portfolio, delivering above-market growth of 15.4% in the quarter,” Gupta said.

US growth

The US business generated $162 million in revenue. “We expect an increase in the coming quarters as we get these major product approvals and are able to increase the supply of each of these products,” Gupta said.

The company maintains full-year EBITDA margin expectations of 18.5-20%, with $1 billion in US sales by fiscal year end.

The US is the second largest market with 22% sales. Commenting on US President Trump’s plan to impose progressive tariffs on generic products in 2028, Gupta said 35-40% of their production currently comes from the US.

“But the U.S. also remains a huge market opportunity. So the question is more about how do we continue to serve the U.S. market and patients in the U.S. and provide high-quality, affordable care,” he said, adding that the firm expects more clarity on the issue. “We have the experience to do this [manufacture locally]“So I think we can adapt to whatever direction it goes,” he said.

Cipla’s share price closed down 1.42% ₹1,395 per person on the National Stock Exchange on Thursday.