Shares of Cipla dipped 8% to Rs 558 on the BSE after the pharmaceutical company posted an 11% decline in its consolidated net profit at Rs 3.77 billion for the September quarter (Q2FY19). It had reported a profit of Rs 4.23 billion in the year-ago quarter. The stock recorded its sharpest intra-day fall in since November 7, 2017.
Shares of Cipla have rallied 4.6% to Rs 662 per share on the BSE in early morning trade after the pharmaceutical company reported a 10% increase in its consolidated net profit of Rs 4.51 billion for the first quarter ended June 30 (Q1FY19), driven by healthy growth in domestic market. It had profit of Rs 4.09 billion in the same quarter year ago.
The stock was trading close to its 52-week high of Rs 663 touched on November 11, 2017 on the BSE in intra-day trade. It hit an all-time high of Rs 752 on March 10, 2015.
Cipla has acquired a 100 per cent stake in Mirren, a South African over-the-counter (OTC) pharmaceutical manufacturer and distributor. The transaction is subject to the approval by the Competition Commission of South Africa.
Paul Miller, CEO of Cipla South Africa, said that once approved, the transaction will enhance Cipla's current OTC portfolio, by adding Mirren's well-established brands like Bronco!
Faced with pricing pressure, large Indian pharmaceutical companies are focusing on selective product launches in the US market. The move comes amid increasing competition in the generic drug space and customer consolidation, which are impacting the companies' profits.
“I do not think we are going to file more than 20 products in a year, but we will choose them well. Nowadays, in the US, you think you have a very good product but there are eight companies filing the product on day one and then there another five after that.
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