Here's why Cipla share price zoomed 10% on October 31; check details

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Cipla share price: Drug giant Cipla shares rose as much as 9.87 per cent to hit an intraday high of Rs 1,557.45 per share on Thursday, October 31, 2024.

 

The uptick in Cipla share price came after the United States Food and Drug Administration (USFDA) on Wednesday classified Goa facility as Voluntary Action Indicated (VAI).

 

In an exchange filing, Cipla said, “We hereby notify that the United States Food and Drug Administration (USFDA) vide communication dated Wednesday, October 30, 2024, has classified the Goa manufacturing facility as Voluntary Action Indicated (VAI).”

 

The company’s Goa unit underwent current Good Manufacturing Practices (cGMP) inspection between June 10 and June 21, 2024.

 

Q2FY25 results 

Cipla posted a 17 per cent rise in consolidated net profit to Rs 1,303 crore in Q2FY25, from Rs 1,115 crore in Q2FY24.

 

The pharma company’s total income from operations rose to Rs 7,051 crore in Q2FY25, from Rs 6,490 crore in the same quarter a year ago.

 

Apart from that, One India Business saw 5 per cent year-over-year growth, with the Branded Prescription segment outperforming the market in key Chronic therapy areas. 

 

The CHL segment showed healthy performance, achieving a 21 per cent increase in revenue year-over-year. 

 

In North America, the company generated quarterly revenues of $237 million, reflecting a 4 per cent year-over-year growth, supported by strong traction in its differentiated portfolio.

 

The One Africa initiative is making major strides, as the North Africa business has been integrated into the SAGA region and rebranded as One Africa. This change has contributed to an overall revenue growth of 22 per cent. Additionally, the Emerging Markets and Europe segments reported impressive revenue growth of 18 per cent in USD terms.

 

Cipla is a global pharmaceutical company dedicated to providing high-quality and affordable medicines. The company offers an extensive portfolio of over 1,500 products that span various therapeutic categories, including respiratory, cardiovascular, arthritis, diabetes, depression, and paediatric care. 

 

Established in 1935, Cipla has a presence in over 80 countries and 47 manufacturing locations worldwide. The company is particularly noted for its groundbreaking work in HIV/AIDS treatment, having introduced a triple anti-retroviral therapy in Africa for less than a dollar a day in 2001, considerably impacting healthcare accessibility in the region.

 

At 11:01 AM, shares of Cipla were trading 8.80 per cent higher at Rs 1,542.20 per share. In comparison, BSE Sensex was trading 0,43 per cent lower at 79,599.27 levels.