2023 High Conviction Update: Cipla (CIPLA IN)- Strong US Business Drove Q4 Result Amid Uncertainty

564 Views16 May 2023 18:30

Boomeranged on Sat, 1 Jul 2023 14:03

Since reporting Q4 results, Cipla shares gained 10%+, showing early signs of revival. The company is seeing some recoveries in the generic prices in the U.S. compared to last year. Moreover, concern over the FDA action on the company's manufacturing facility impacting revenue seems to be overdone. Cipla is well-positioned to leverage on its complex and niche respiratory generics portfolio.

SUMMARY

IN Q4FY23, Cipla Ltd (CIPLA IN) reported highest ever US business revenue of $204M, up 27% YoY and 5% QoQ, driven by expansion in market share of key launches.
Lead peptide asset Lanreotide injection, launched in Q4FY22, is consistently gaining market share. The product currently has market share of 17%, up from 14.1% in Q3FY23 and 9.6% in Q2FY23.
Ex-COVID, India business revenue increased 16% YoY, driven by chronic branded prescription portfolio. FY23 marks the second consecutive year of market beating growth of Cipla’s chronic portfolio.

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