Cipla gains 3% on USFDA's final approval for Lanreotide injection

ICICI Securities remains positive on Cipla's calibrated approach of focusing more on branded products and core therapies across the world

Shares of Cipla gained 3% to Rs 887.85 on the BSE in Monday's intra-day trade after the company received the United States Food and Drug Administration's (USFDA) final approval for its Lanreotide injection.

Lanreotide Injection is supplied in 60 mg/0.2 mL, 90 mg/0.3 mL, and 120 mg/0.5 mL single dose pre-filled syringes. It is indicated for the treatment of patients with Acromegaly and Gastroenteropancreatic Neuroendocrine Tumors.

The management said this approval is a significant step for company's US business and is in-line with our aspiration to continue growth in our complex product pipeline and address unmet patient needs.

The active ingredient, route of administration and strengths for approved drug are the same as the reference drug with market size of around US$867 million (MAT October 2021, IQVIA).

"This approval is in-line with the company's aspiration for more complex products in the US. US business has grown at a CAGR of 15 per cent from FY16-21 and contributed 20 per cent to total revenue in FY21. We remain positive on Cipla’s calibrated approach of focusing more on branded products and core therapies across the world," ICICI Securities said in a note.

At 10:07 am, Cipla was trading 2.6 per cent higher at Rs 882.20, as compared to a 1.9-per cent decline in the S&P BSE Sensex. The stock of pharmaceuticals had hit a 52-week high of Rs 1,005 on September 29, 2021.